Inflation anxiety drags on AI stocks for a second day as markets point to a mixed open
Inflation data and higher rate expectations renewed selling in chipmakers and other AI names as investors weighed demand for data centers and financing risks.
- On Friday, the Nasdaq Composite fell 2.1%, capping its worst week since June as inflation anxiety triggered a broad sell-off in technology shares.
- Thursday's Producer Price Index report showed a 1.3% surge for September, signaling broadening inflation that intensifies pressure on the Federal Reserve to raise interest rates.
- Chip stocks led declines as Micron Technology fell 5.6% and Advanced Micro Devices dropped 6%, reflecting investor concerns about debt-financed artificial intelligence infrastructure spending.
- IMF Assistant Director Jason Wu warned: "If there are questions about the monetization of AI, the equity investments will deplete in value, the debt may be difficult to service."
- Geopolitics and earnings reports from Meta, Tesla, and IBM next week will likely vie for investor attention as traders search for signs of tech sector resilience.
68 Articles
68 Articles
Global markets have had a volatile week, marked by US inflation, tensions in the Middle East, and selling pressure on AI stocks. This week, attention is focused on the Central Bank's interest rate decision domestically and on the earnings reports of major technology companies internationally.
Oil Topped $110 as Tech Stocks Lost $1 Trillion in a Day
When crude spiked past $110 and wiped a trillion dollars from tech valuations in a single session, the same geopolitical shock that lifted Exxon and Chevron near their 52-week highs also planted the seeds of a rapid reversal.
Tech stocks drag Nasdaq 2% lower; sheds over 4% for the week (MU:NASDAQ)
primeimages The Nasdaq Composite Index (COMP:IND) plunged 2.14% on Friday as technology stocks came under pressure. Traders wrapped a mostly losing week amid a pullback in artificial intelligence-related stocks, with memory chip stocks among the hardest-hit segments as investors reassessed the sector’s Source: Business Insider
The accumulation of debt to build data centers and persistent inflationary pressure led Nasdaq to record its worst weekly performance since June.
U.S. markets are weighed down by an extended sell-off in the tech sector
Stocks closed lower on Wall Street as more drops for big tech companies weighed on the market. The S&P 500 lost 1.1% Friday, and the Nasdaq composite sank 2.1%. Both posted their worst week since June. The Dow Jones Industrial…
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