Wall Street and global markets are seeing a sharp downturn and sweeping sell-off, hitting technology and artificial intelligence stocks, according to coverage by Eram Business and other financial websites
Among the most notable figures and losses in the crash, the Nasdaq Composite fell by between 5.0% and 5.3% (losing more than 1,300 points), bringing it close to or into correction or bear-market territory
The S&P 500 also fell about 3.2% to 4.2%, recording billions of dollars in losses in its market value. [1, 2, 3]
The Dow Jones Industrial Average also plunged by more than 1,000 to 1,700 points
The “Magnificent Seven” collectively lost nearly $900 billion in a single session, led by Nvidia, which lost more than $374 billion, followed by Tesla and Microsoft
The hardest-hit sector was chips and semiconductors, which fell by an average of 13.9%. AMD shares dropped by nearly 15% to 15.76%, Micron shares fell by around 15% to 17%, and the Philadelphia Semiconductor Index declined by 7.1%
European markets were also affected, with the Stoxx 600 closing lower and shares of European chip companies such as Infineon and ASML declining
Reasons behind the sell-off
- U.S. midterm election results
Growing concerns that Democrats will take control, along with expectations of strict regulatory and environmental restrictions on the AI sector and data centers
- Doubts about the value of massive spending
Investors are increasingly concerned about the actual economic returns on the hundreds of billions that major companies have poured into AI infrastructure and data centers
- Negative reports and operational problems
Reports of hundreds of thousands of AI chips being held up in Hong Kong and the suspension of major memory factory projects in Taiwan.
- Monetary policy and energy prices
Ongoing uncertainty over interest rates, inflationary pressures, and energy prices
- Liquidity and leverage problems
Hedge funds and leveraged portfolios invested in AI stocks faced waves of forced liquidations
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