Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
- U.S. stocks fell sharply on November 5 after investors reassessed technology shares following Democrats’ midterm-election victories.
- The Nasdaq Composite fell about 5%, while the Dow declined 2.2% and the S&P 500 fell 3.3%.
- Semiconductor stocks led the sell-off, with the Philadelphia Semiconductor Index falling about 11%.
- Investors worried that tighter rules or slower construction for AI data centers could weaken demand for chips and related infrastructure.
637 Articles
637 Articles
Nasdaq fell by 6.4% in the middle of the session this Thursday. How to explain it? Quarterly figures for the technology sector have remained good, but do not...
The Nasdaq technology index on Wall Street has partially recovered from yesterday's heavy losses. Investors took advantage of the lower share prices to buy shares again, particularly of chip companies. These had been punished severely out of fear that a Democratic majority in the US Congress could lead to stricter regulations for artificial intelligence and delays in the construction of AI data centers.
New York Stock Exchange is recovering from Thursday's losses. European indices are under pressure. The situation is quite fragile, says chief economist of Moody's Analytics
At the leading AI companies, the previous euphoria gives way to a noticeable disillusionment. However, the global price slip does not mark an end to the boom, but rather a turnaround. Analyst Lipkow emphasizes: The AI cycle grows out of its infancy.
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