- Shares drop in US and Asia as AI stocks slide
- Major firms like Nvidia, Alphabet, Microsoft, Apple, and Tesla led the losses
- Investors are growing concerned about high AI-related expenditures without immediate revenue benefits
- Additionally, investors remain cautious due to uncertainties in the US presidential election campaign and potential interest rate cuts by the US central bank
Shares drop in US and Asia as AI stocks slide
Financial markets in the US and Asia experienced sharp declines as investors sold off technology stocks, particularly those related to artificial intelligence (AI). In New York, the S&P 500 dropped 2.3%, the tech-heavy Nasdaq fell 3.6%, and the Dow Jones Industrial Average decreased by 1.2%. Major firms like Nvidia, Alphabet, Microsoft, Apple, and Tesla led the losses.
In Asia, Japan’s Nikkei index fell by 3%. AI chip giant Nvidia’s shares fell 6.8%, losing about 15% of its value over two weeks. Tesla’s stock dropped over 12% following disappointing financial results. Alphabet’s stock declined by 5% despite reporting better-than-expected financial results but indicated high spending for the rest of 2024.
Japanese chip makers Renesas Electronics and Tokyo Electron, along with South Korea’s SK Hynix, were among the significant declines in Asia.
Investors are growing concerned about high AI-related expenditures without immediate revenue benefits.
Jun Bei Liu of Tribeca Investment Partners noted that investors will now focus more on returns rather than broadly buying into the AI sector.
Additionally, investors remain cautious due to uncertainties in the US presidential election campaign and potential interest rate cuts by the US central bank.