Gathering AI storm clouds doom tech stocks to darkest day in a year
Big tech stocks slumped Thursday, putting them on track for their biggest decline since the "Liberation Day" rout last year, the most significant shakeout yet in what has been a punishing autumn for the AI trade. The Nasdaq 100 index was set for market-value declines exceeding $2 trillion on investor fears that the Democratic Party's sweeping midterm victorycould stall AI infrastructure expansion…
On Thursday, big tech stocks experienced their largest drop since the devastating rout following the Democratic Party's victory in the midterm elections last year, signaling a significant downturn in the AI sector. The Nasdaq 100 index was on track to lose more than $2 trillion in market value as investors grew concerned about potential setbacks to AI infrastructure development due to the new Democratic administration.
Analysts and portfolio managers noted that these declines were not entirely unexpected, given the enormous gains many stocks had enjoyed and the financial concerns surrounding smaller infrastructure firms, such as Nebius and CoreWeave. These firms had already been struggling with fund-raising challenges due to higher interest rates and tighter financial conditions since the Federal Reserve's rate hikes in late summer.
However, the magnitude of the decline for two consecutive days raised concerns that sentiment might be shifting, potentially leading to further selling.
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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- Gathering AI storm clouds doom tech stocks to darkest day in a year dailymaverick.co.za
- Gathering AI storm clouds doom tech stocks to darkest day in a year koreatimes.co.kr
