Tech firms hit by AI slowdown call with Fed expected to hike rates
The Federal Reserve is expected to increase borrowing costs on Sept 16.
On September 14, technology firms experienced a significant decline in stock prices after leaders of AI-focused companies urged for a slowdown in development due to potential risks to humanity. The losses were exacerbated by rising oil prices following Saudi Arabia's closure of a crucial pipeline and high US inflation data. Tech investment giant SoftBank saw a more than 12 percent drop, while chipmakers Kioxia and Advantest fell by over seven and two percent, respectively.
South Korean SK hynix and Samsung also saw sharp declines. The market downturn was further fueled by expectations of a Federal Reserve rate hike to combat high inflation, with traders selling tech stocks as a result.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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