Wall Street steadies after sharp global sell-off in AI stocks
AgenciesWall Street is steadying Thursday following jarring drops for stocks worldwide in the artificial-intelligence industry on worries about how much longer the AI frenzywill la...
Wall Street experienced a brief decline following a sharp sell-off in global AI stocks due to concerns over the sustainability of the AI frenzy. The S&P 500 initially dropped but quickly recovered, inching closer to its all-time high. The Dow Jones Industrial Average gained 0.9 percent, while the Nasdaq composite slipped by 0.4 percent.
Earlier in the day, AI stocks caused a significant sell-off, leading to declines in South Korea's Kospi index and Japan's Nikkei 225. The weakness in AI stocks was attributed to worries about excessive spending on the technology and the debt loads of many AI-related companies. Despite the initial setback, AI stocks eventually stabilized, and broad U.S. indexes improved.
CoreWeave, an AI computing company, fell 3.5 percent but later halved its loss. Nvidia, the leading AI chip company, fell 2 percent, weighing heavily on the S&P 500. The decline in AI stocks allowed other stocks to perform better, contributing to the overall market recovery.
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