Ticker: Wall Street drifts as AI stocks hold steadier

The day’s business news at a glance

Wall Street drifted through a quiet day of trading as AI stocks trimmed some of their sharp recent losses. The S&P 500 fell 0.2% Monday, coming off just its third losing week since the end of March.

The Dow Jones Industrial Average dropped 0.6%, and the Nasdaq composite was nearly unchanged after slipping less than 0.1%. Stocks like Nvidia and Sandisk steadied after tumbling last week on worries that their prices had shot too high. But the broad market also felt pressure from rising yields in the bond market, which continued to climb with oil prices.

FDA focused on lettuce grower as parasite source

Federal health officials have remained focused on lettuce from Taylor Farms as the source of a multistate outbreak despite inaccurate test results reported over the weekend.

Food and Drug Administration officials on Monday briefed reporters on how the government erroneously reported a direct link between a sample of lettuce from Taylor Farms and the parasite that causes severe diarrhea. Officials said the false positive result came from a rapid, molecular test used to screen incoming lettuce from Mexico at the border. While the FDA reported the link Saturday, officials said a subsequent quality check found the result was a false positive.

Millions have defaulted on their student loans

According to an Associated Press analysis, more than 4.2 million people across the country defaulted on student loans between April 2025 and March 2026. The total number of borrowers in default has reached a record 9.5 million.

The surge includes many who went off track in 2024, when loan payments started coming due again after a pandemic-era freeze. Hundreds of thousands more are months behind on payments, and another surge in defaults could be on the way. Borrowers enter default after missing payments for nine months. The consequences can upend people's lives. It hurts credit ratings and can lead to the debt being sent to collections.

EU hits AliExpress with 550 million-euro fine

The European Commission has fined AliExpress 550 million euros for failing to curb the sale of unsafe and counterfeit products. This is the largest fine under the EU's Digital Services Act. The announcement came Monday, months after another retailer, Temu, faced a similar penalty.

The commission criticized AliExpress for not complying with its obligations to ensure consumer safety. AliExpress disagreed with the fine, claiming it has made significant improvements. The company has until Oct. 20 to submit an action plan. The Digital Services Act aims to protect users from harmful content and uphold fundamental rights.

In the West Bank, cash is breaking the economy

In most places, cash is king. But in the Israeli-occupied West Bank, having too much is gumming up the machinery of daily life. The Palestinian Monetary Authority says Israel's longtime limit on accepting cash that accumulates in Palestinian banks is creating a cascading crisis.

Palestinian banks are so awash in Israeli shekels that they are running out of vault space and refusing cash deposits from customers. That's made it harder for West Bank residents to spend paper money and for businesses to put their earnings into accounts. Palestinian officials and business owners worry the growing surplus is pushing the economy toward collapse.