AI stocks are taking a beating amid inflation, interest rate worries
A sell-off for artificial-intelligence stocks is hitting Wall Street again after whipping around the world on worries about how much longer the AI frenzy will last.
Wall Street has been hit by a sell-off in artificial-intelligence stocks, following global concerns about the longevity of the AI frenzy. The S&P 500 slipped 0.5%, the Nasdaq composite fell 1.2%, while the Dow Jones Industrial Average rose 269 points. Nvidia and Advanced Micro Devices led the decline, dropping 3.2% and 5.4% respectively.
South Korea's Kospi index plummeted 7.6%. Inflation data released Wednesday revealed that prices remain well above the Federal Reserve's target of 2%, potentially prompting another interest rate hike before the year's end, which could pressure equities. Chipmaker Nvidia and memory chipmaker Kioxia Holdings both shed 11.1%. China's market also suffered, with the Shanghai Composite index falling 1.6%.
The U.S. bond yield eased to 5.09%, but remains high, making it harder for companies to obtain funds for data centers and AI chip purchases.
Written by urgent.news from Global News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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