AI stock slump causes worst day on Wall Street since April
Kyiv • UNN
On Thursday, the US stock market plummeted due to a massive sell-off in AI-related companies. The S&P 500 index fell by 1.7%, and the Nasdaq dropped by 2.6%.
The American stock market plummeted on Thursday due to a massive sell-off of shares in artificial intelligence-related companies and investor doubts about further interest rate cuts by the Federal Reserve. This is reported by AP, writes UNN.
Details
The S&P 500 index fell by 1.7%, and the Nasdaq dropped by 2.6%, experiencing one of its worst days since the spring downturn. The Dow Jones lost 672 points, or 1.4%.
The biggest drop was recorded by Nvidia – the company's shares fell by 4.9%, pulling down other industry giants: Super Micro Computer lost 8.2%, Palantir Technologies – 7%, Broadcom – 5.6%. Investors fear that "AI giants" may be overvalued after rapid growth, which some analysts are already comparing to the "dot-com bubble" of 2000.
Meanwhile, weak expectations for rate cuts in December are further pressuring the market. Traders recall that cheaper loans usually stimulate the economy and increase asset values, but their absence could trigger a new wave of correction on exchanges.