US EditionAsian shares are mixed after Nvidia's losses pull Wall St lower, as AI-linked layoffs rattle markets
Nvidia's 5.5% stock drop, Block's 40% workforce cut due to AI, and Netflix's strategic withdrawal pressured US and Asian markets this week, with mixed Asian share performance.
- On Thursday, Nvidia's stock sank 5.5%, dragging U.S. stocks lower and weighing on global trading this week.
- Market attention centered on AI-driven workforce cuts as Block CEO Jack Dorsey revealed plans to lay off 40% of staff, while Nvidia's repeated strong quarters are "losing their oomph".
- Asian trading showed a mixed picture, with Tokyo's Nikkei 225 at 58,810.03 while the Shanghai Composite slipped; U.S. stocks declined, with the Nasdaq sinking 1.2%.
- Market breadth showed seven S&P 500 stocks rose for every three that fell, and Salesforce climbed 4% after earnings, reflecting mixed sector shifts.
- Macro indicators may reshape risk sentiment as U.S. jobless claims ticked up last week and U.S. inflation data was due later Friday, with the U.S. dollar at 155.80 yen.
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20 Articles
The Economy Is Lurching Downward as Fear of AI Spreads
AI chipmaker Nvidia, the world’s most valuable company, demolished analyst expectations this week when it posted a massive 73 percent increase in fourth-quarter revenue. But then something strange happened: Nvidia’s shares tanked by over five percent following the announcement, as Bloomberg reports, in its biggest one-day drop since mid-April. It was a baffling reaction to a financial slam dunk, highlighting ongoing fears that the massive amount…
Exceptional performances have become so typical of Nvidia that they are losing impact; their actions fell by 5.5%, registering the worst since April
Times of India
The Economic TimesGlobal Market Today | Asian markets retreat following decline in US stocks
Asian stocks saw a slight dip from their peak levels. This followed a downturn in Wall Street markets. Investor sentiment was impacted by a subdued response to Nvidia's earnings report. Despite this, Asian equities continue to outperform global benchmarks this year. Investors are focusing on companies involved in the artificial intelligence supply chain.
In a movement that could have been designed to rekindle fears about artificial intelligence and employment, the payment processing company Block announced yesterday that it plans to fire more than 40% of its staff, attributing the decision to productivity improvements thanks to the use of AI tools. The action rose 20% in post-closure operations. Beyond what is thought about the long-term impact of AI on the economy, it is clear that information …
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