Tech stocks fall in US and Asia as AI shares decline

Tech prices fell sharply in both the US and Asia. Shares of AI companies fell the most, which hurt big companies.

The US and Asian stock markets have dropped sharply as buyers sell off their shares in tech companies. Stocks in artificial intelligence (AI) companies have been hit the hardest.

Both the S&P 500 and the tech-heavy Nasdaq fell the most in one day since 2022. This happened in New York on Wednesday. It went down by 1.2% on the Dow Jones Industrial Average. Companies like Nvidia, Apple, Google, Tesla, Microsoft, and Alphabet were the ones that lost the most money. The Nikkei average in Japan fell more than 3% on Thursday, the most in all of Asia.

Most of this year’s stock market gains have come from shares in tech companies, especially those that work with AI. One of the biggest winners in the AI boom has been Nvidia, a company whose shares fell 6.8%. This item has lost around 15% of its value in the past two weeks.

Company-Specific Losses and Impact in Asia

When Elon Musk, the billionaire founder of Tesla, posted its latest financial data that disappointed investors, the company’s shares dropped by more than 12%.

Alphabet, the company that owns Google and YouTube, had a 5% drop in stock price. The business reported better-than-expected earnings earlier this week, but it also said it would keep spending a lot for the rest of 2024. Like many of its rivals, Alphabet has been putting billions of dollars into the research and use of AI technology.

Chipmakers Renesas Electronics and Tokyo Electron  as well as SK Hynix in South Korea, were some of the worst hit in Asia. There were also big surprises in the US presidential race and in when the US central bank cut interest rates, which has made investors wary.