The S&P 500 fell 1.2% for its worst day since July, while the Nasdaq composite tumbled 2.6%. The weakness for tech stocks was so overwhelming that it masked strength for the rest of the US market.
The latest shudder for stocks in the AI industry pulled markets lower worldwide on Thursday, while oil prices hit their highest levels since May on worries about the war with Iran.
AI-related stocks have been swinging on worries that their boom may be under threat because of how expensive it’s become to borrow money to build datacenters and buy more AI chips.
Why this matters: The drop in tech stocks could signal a shift in investor sentiment towards the industry.
What this means for you: If you have investments in AI-related stocks, their value may be affected by the current market trends.
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