New AI dip on Wall Street

TT

Published 22.08

 

AI concerns continue to characterize trading on the New York Stock Exchange. Photo: Richard Drew/AP/TT

Tech stocks linked to the AI ​​sector fell again on Thursday after a one-day recovery during a turbulent week on Wall Street.

The Nasdaq's technology-heavy composite index plunged 1.9 percent. The Dow Jones Industrial Average and the broad S&P 500 also fell, down 0.8 and 1.1 percent, respectively.

The decline was clear among several shares belonging to companies operating in AI. Semiconductor giants Nvidia and AMD lost 3.7 and 7.3 percent. Software and analytics company Palantir fell 6.8 percent, while cloud services company Oracle saw a decline of 2.6 percent.

The turmoil, with many tech stocks having a yo-yo movement during the week, is rooted in investor concerns about an AI bubble with overvalued companies.

Snap surged 9.6 percent against the tide after the Snapchat owner delivered a strong quarterly report and announced a partnership with Perplexity AI.

A poor job figure also dragged down the stock market mood in general. The number of layoffs in the US amounted to 153,000 in October, almost three times as many as in September. This is the worst figure for October since 2003, according to Bloomberg.