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…
New York - Stock drops in the artificial-intelligence sector are causing worldwide market declines on Thursday, as oil prices reach their highest levels since May due to concerns about the Iran conflict. The S&P 500 dropped 1.4 percent, hovering near its worst performance since July, while the Nasdaq composite fell 2.8 percent. Despite the tech-heavy weakness, most U.S. stocks managed to gain, with the Dow Jones Industrial Average slipping only 0.2 percent, or 113 points, by 2:30 p.m. Eastern time.
The AI industry's volatility stems from worries about mounting borrowing costs for building data centers and acquiring more AI chips, as well as fears that prices may have inflated during a prolonged boom. Even though companies within the sector reported slightly stronger-than-expected profits and revenue growth, such as Lam Research in the summer, analysts remain cautious.
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.
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