The US and Asia financial markets have been negatively affected, and the technology sector is feeling the heat due to the sell-offs of relevant stocks, especially those connected with AI.
On Wednesday, the S&P 500 declined 2. 3%, and the technology-dominated Nasdaq dropped by a third. 6% intraday was their largest single-day decrease in well over a year since last 2022. The Dow Jones Industrial Average also climbed one percent. 2%, and major firms, including Nvidia, Alphabet, Microsoft, Apple, and Tesla.
The AI sector has had a major impact on this year’s stock market returns, but the recent Selloff has been most affected. AI chip maker Nvidia’s shares went down by 6 percent. 8 percent and the company has shed approximately 15% of its market value in the last two weeks.
It was the same story in Asia, where Japan’s Nikkei index was the biggest loser, dropping over 3%. Carmakers and semiconductor makers were the worst hit by the market meltdown, as were electronics giants like Japanese Renesas Electronics and Tokyo Electron and South Korean SK Hynix, among others.
Portfolio Manager at Tribeca Investment Partners Jun Bei Liu said, “Investors are now getting more worried about all these expenditures with AI without the upside of this. ” But she shared that this is not the end of the AI bubble.
The market is also skeptical about events that may influence the US presidential campaign and the timing of the US Federal Reserve’s interest rate cut.
