AI stocks fall sharply after US midterm elections
AI company shares fell on the US market after the midterm elections, as the S&P 500 dropped 4.4%, the Nasdaq fell 5.5% and Nvidia shares declined 9.3%.
Artificial intelligence company shares on the US market fell sharply after the midterm elections, as the Standard & Poor's 500 dropped 4.4%, the Dow Jones lost 1,833 points, or 3.4%, and the Nasdaq fell 5.5%, according to the Associated Press.
Semiconductor stocks led the decline, with Nvidia down 9.3%, AMD down 17.3% and CoreWeave down 9.8%, amid concerns about a slowdown in spending on AI infrastructure.
The Associated Press said investors weighed rising borrowing costs against the possibility that governments would halt some data center projects after the elections, prompting them to reduce positions in stocks linked to the sector.
The agency noted that the Nasdaq is now 11.9% below its record high set last month, a move known as a correction, while South Korea's Kospi fell 5.3% and Japan's Nikkei 225 dropped 1.8%.
What do these terms mean?
Nasdaq index: An index of shares of companies listed on the Nasdaq exchange, and it includes a large number of technology and AI companies.
Standard & Poor's 500: An index that tracks the performance of 500 large US companies and is considered a broad measure of the market.
Semiconductors: The electronic chips that run computers, data centers and AI devices.
Borrowing costs: The interest and expenses companies and individuals pay when obtaining loans or financing.
Sell-off: Investors' rush to sell shares out of fear of further losses, which drives prices down.
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