Nasdaq, S&P 500 and AI Stocks Rebound After Brutal Week
- The Nasdaq Composite plunged 5.5% into correction territory on Thursday, marking its worst performance since the 2025 'Liberation Day' rout, after Democrats regained control of Congress in midterm elections on Tuesday.
- Fears that a 'Blue Wave' would disrupt the U.S. data center build-out triggered the sell-off, as prominent Democratic victors including Ohio Governor-elect Amy Acton and Michigan Senator-elect Abdul El-Sayed campaigned against such facilities.
- Investors had questioned whether massive AI spending justified high valuations, prompting Dong Baozhen, Chairman of Lingtong Shengtai, to state the sell-off proves AI stock prices were built on 'rosy illusions about the future.'
- Yorkville Ives & Co. partner Dan Ives argued the sell-off is overdone, comparing its magnitude to the 2020 and 2025 tech sell-offs, while other market participants reported 'client margin calls' and widespread complaints.
- Big Tech companies remain poised to allocate $3 trillion to $4 trillion toward AI capital expenditures over the next few years, ensuring the long-term industry build-out continues despite current market turbulence.
84 Articles
84 Articles
Sydney Morning Herald
ASX eyes gains, Wall Street steadies as AI stocks rebound
AI stocks bounced back and recovered some of their sell-off from the previous two sessions.
AI stocks halt their brutal, worldwide sell-off as Wall Street trims its loss for the week
NEW YORK — AI stocks bounced back Friday and recovered some of their sell-off from the last two days. The rest of the U.S. stock market was mixed, though, following a whirlwind few days of Wall Street trying to sort…
On Thursday, $2.5 trillion in US stock exchanges dissolved into thin air. The day after, there was a recovery, but it was too timid for a real warning.
How anti-AI trade after US midterm election results is reviving Indian, Chinese stocks
The unraveling of the AI trade after the US midterm elections is forcing investors to rethink their Asia playbook, reviving demand for out-of-favor Chinese and Indian stocks as well as companies poised to benefit from easing inflation and trade tensions.
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