Jim Cramer says the AI trade is not going away as Nasdaq enters correction
US stocks experienced a sharp decline on Thursday, with technology and semiconductor shares taking the brunt of the losses. The Nasdaq, Dow, and S&P 500 all fell significantly. The Nasdaq fell by 3.09%, reaching 24,941.44, while the S&P 500 dropped by 1.66% to 7,560.88. The Dow Jones Industrial Average decreased by 0.66%, settling at 53,004.25.
Qualcomm's stock plummeted by 9%, suffering due to weak sales of smartphone chips and underperforming in areas linked to Apple. Major chipmakers like Nvidia, Advanced Micro Devices (AMD), Intel, and Marvell Technology also contributed to the decline. The fall in chip stocks was attributed to concerns over the future of the AI industry and the rapid expansion of data centers across the US.
Investors were worried that the Democrats' victory in the midterm elections might lead to increased scrutiny of AI data center projects, particularly in states where public opposition to the industry's expansion has been growing.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- US stocks tumble as Nasdaq, Dow, S&P 500 fall; chip stocks and AI data centre shares plunge hindustantimes.com
- The Nasdaq 100 drops 6%, losing a record $2.3T in value, and the Philadelphia chip index plunges 12%, on concerns over the AI trade after Democrats won Congress (Natalia Kniazhevich/Bloomberg) bloomberg.com
- The Nasdaq plunges 4% — and toward correction territory — as election results spook AI and chip stocks qz.com
- The AI trade cracks as Nasdaq plunges techcentral.co.za
- Jim Cramer says the AI trade is not going away as Nasdaq enters correction cnbc.com
- Nasdaq set for correction as investors reassess AI spending boom channelnewsasia.com
