Equities: AI slowdown fears hit chip stocks – Deutsche Bank
Deutsche Bank’s Jim Reid reports that US equities weakened as AI slowdown headlines triggered a sharp selloff in semiconductor names, dragging the broader S&P 500 lower.
Deutsche Bank analyst Jim Reid revealed that US equities suffered a decline as AI slowdown reports prompted a significant drop in semiconductor stocks, impacting the broader S&P 500. The Philadelphia Semiconductor Index experienced its worst single-day performance since July due to fears of an AI slowdown. Despite brief support from President Trump's statements, the S&P 500 fell by 0.48%, while European markets followed suit with the STOXX 600 down by 0.49%.
In Asia, markets also faced losses, with the S&P/ASX 200 down by 0.89%, the KOSPI by 0.71%, the Hang Seng by 0.23%, and the Nikkei by 0.16%. The currency markets reflected this downward trend, with AUD/USD trading below 0.7150 and USD/JPY approaching 155.00. Meanwhile, gold struggled to gain traction near its one-month low as traders prepared for important FOMC meetings.
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