Wall Street points lower before the opening bell as selling of AI shares weigh on sentiment

Wall Street pointed lower in premarket trading as artificial intelligence stocks weighed on markets following Monday's big rally.

Futures for the S&P 500 lost 0.3% while futures for the Dow Jones Industrial Average were flat. Futures for the Nasdaq, where most of the Big Tech companies trade, fell 0.5%.

Nvidia shares slid 2% after technology giant SoftBank Group Corp. announced that it had sold its entire stake in the artificial intelligence chipmaker last month for $5.83 billion. Softbank shares fell 2%.

Nvidia, which rallied nearly 6% a day earlier, has been by far the strongest force on markets recently. It was a big reason the broader market was able to claw back nearly all of last week's losses on Monday.

There is widespread belief that technology stocks have shot too high due to