Edith Hejberg
In the US, the tech-heavy Nasdaq closed down 2% on Tuesday, marking its worst single-day performance in nearly a month.
Stock markets across the globe dropped sharply this week, rattled by growing concern that the artificial intelligence investment boom may be peaking. The steep falls came after warnings from top bankers that a market correction could be looming.
Wall Street posts biggest one-day drop in weeks
In the US, the tech-heavy Nasdaq closed down 2% on Tuesday, marking its worst single-day performance in nearly a month. The broader S&P 500 also slid just over 1%, dragged lower by declines in major technology stocks.
‘Magnificent seven’ AI stocks all take a hit
Each of the so-called “magnificent seven” AI-driven giants, Nvidia, Amazon, Apple, Microsoft, Tesla, Alphabet and Meta, saw their stock prices fall. These companies have been central to the AI rally, but are now facing investor pushback over their sky-high valuations.
Palantir tumbles despite upbeat forecast
Palantir Technologies was one of the worst-hit, plunging nearly 8%. This came even after the company raised its revenue outlook, suggesting growing investor anxiety is overriding positive news.
Michael Burry bets against AI darlings
Investor Michael Burry, made famous for predicting the 2008 financial crisis, has placed short bets against both Palantir and Nvidia. His move sparked criticism from Palantir’s CEO and triggered further market jitters.
Palantir CEO fires back at short-sellers
In an interview with CNBC, Palantir boss Alex Karp took aim at Burry and other sceptics. He accused them of trying to “call the AI revolution into question,” defending the company’s long-term vision.
Asian markets follow US into red
Markets in Asia echoed the US sell-off. Japan and South Korea saw their indices drop by over 5%, marking the region’s steepest one-day decline in seven months, as the fear of overvalued tech stocks spread.
European markets also slip
European stock markets opened lower on Wednesday. Indices in the UK, France and Germany dipped modestly, extending the global risk-off mood that has taken hold of investors.
Bank bosses warn of market correction
The CEOs of Morgan Stanley and Goldman Sachs added to the caution, stating that a market correction may be on the horizon. Their remarks come on the heels of a similar warning from JPMorgan’s Jamie Dimon last month.
Deutsche Bank sees signs of a pullback
Jim Reid, an analyst at Deutsche Bank, noted a “growing chorus” of voices warning that the equity market could be nearing a correction. He said investor sentiment had taken a sharp turn in the past 24 hours.
AI investment concerns gain traction
Analysts are also beginning to question the sustainability of AI investment. Most of the capital has been funnelled into a handful of dominant players like OpenAI and Nvidia, with limited visible returns so far.
Bitcoin drops below $100K
The crypto market wasn’t spared. Bitcoin dipped below $100,000 for the first time since June, as investors pulled out of riskier assets amid mounting concerns over the global economic outlook.
Worst bitcoin month in a decade
After hitting a record high above $126,000 in early October, bitcoin slid by 3.7% for the month. It marked the cryptocurrency’s worst monthly performance in 10 years, according to CoinMarketCap.
This article is made and published by Edith Hejberg, who may have used AI in the preparation
