NEW YORK — More drops for AI chip stocks are dragging the U.S. market lower on Thursday, even as much of Wall Street rises following strong profit reports from AppLovin, Tapestry and other companies.

The S&P 500 fell 2 per cent and erased its rally from the day before, which was its best in three months. The Dow Jones Industrial Average was down 502 points, or 0.9 per cent, as of 10:10 a.m. Eastern time, and the Nasdaq composite was 3.6 per cent lower.

Stock markets worldwide felt pressure from continued drops for companies in the artificial-intelligence industry, and South Korea’s Kospi index…