Worldwide drops for AI stocks send Wall Street toward its worst day since July
NEW YORK — Drops for stocks in the artificial-intelligence industry are dragging markets down worldwide on Thursday, while oil prices hit their highest levels since May on worries about the war with Iran. The S&P 500 fell 1.4 percent toward its worst day since July, while the Nasdaq composite tumbled 2.8 percent. The weakness for tech stocks was so overwhelming that it masked strength for the…
Global markets experienced a significant decline on Thursday due to drops in artificial intelligence (AI) stocks, bringing Wall Street closer to its worst day since July. The S&P 500 fell 1.4 percent, reaching its lowest point since July, while the Nasdaq composite sank by 2.8 percent. Despite the weakness in tech stocks, the majority of U.S. stocks managed to rise, resulting in a more modest 0.2 percent decline for the Dow Jones Industrial Average, which stood at 113 points as of 2:30 p.m. Eastern time.
AI-related stocks faced increased uncertainty due to concerns over potential threats to their boom, primarily driven by the rising costs of borrowing money to construct data centers and acquire more AI chips. Additionally, worries persist that AI stock prices were inflated following a prolonged frenzy, even though industry companies continue to report robust growth.
For instance, Lam Research, a company specializing in semiconductor equipment and services, reported slightly better-than-expected profits and revenue for the summer.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
