Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
- The Nasdaq Composite fell nearly 5% Thursday and was approaching correction territory.
- Democratic victories in the U.S. midterm elections raised concerns that governments could pause new data-center construction, reducing future demand for AI chips.
- AI-Related stocks, including Nvidia, Advanced Micro Devices, and CoreWeave, suffered steep losses.
- AppLovin and Tapestry gained after reporting stronger-than-expected results.
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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