The losses came from major companies such as Nvidia, Alphabet, Microsoft, Apple and Tesla
Financial markets in the US and Asia have fallen sharply as investors sell off shares in technology companies, with artificial intelligence (AI) stocks particularly hard hit.
In New York trading on Wednesday, the S&P 500 lost 2.3% and the tech Nasdaq fell 3.6%, its biggest daily decline since 2022. The Dow Jones industrial average fell 1.2% .
The losses came from major companies such as Nvidia, Alphabet, Microsoft, Apple and Tesla.
On Thursday, Japan’s Nikkei index fell in Asia as it fell more than 3 percent.
Shares in technology companies, especially those related to artificial intelligence, have driven much of this year’s stock market gains.
Artificial intelligence giant Nvidia, which has been one of the main beneficiaries of the AI ​​boom, saw its shares fall 6.8%. It has lost about 15% of its value in the last two weeks.
The company is expected to announce financial results at the end of August.
Shares in multi-billionaire Elon Musk’s electric car maker Tesla fell more than 12% after investors were disappointed by its latest financial results.
The share price of Google and YouTube parent Alphabet was 5% lower. Earlier this week, the company reported financial results that beat analysts’ expectations, but said its spending will remain high for the rest of 2024.
Alphabet, like many of its competitors, has pumped billions of dollars into the development and adoption of AI technology.
In Asia, chip makers Renesas Electronics and Tokyo Electron in Japan and South Korea’s SK Hynix were among the big decliners.
“Investors are now more concerned about all this spending with AI without the benefit of revenue,” said Jun Bei Liu, Portfolio Manager at Tribeca Investment Partners.
“I don’t think this will signal the beginning of distrust in AI … it just means that investors will focus more on the returns in this area than on the market as a whole,” he added.
Investors are also cautious after big surprises in the US presidential election campaign and the US central bank’s timing of interest rate cuts.
With information from BBC News
Source: Skai
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