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AI stocks resume their drops and drag markets lower worldwide
AP News • • business
Key Points:
- The S&P 500 fell 0.3% and the Nasdaq dropped 0.6% due to declines in AI stocks, despite most stocks within the S&P 500 rising; the Dow Jones Industrial Average also fell 0.3%.
- Samsung Electronics' shares plunged 6.9% in Seoul despite reporting a projected 1,800% increase in operating profit for Q2, as investors had already priced in strong performance after the stock more than doubled this year.
- AI-related stocks like Micron Technology and Intel saw significant declines of 5% and 9.1% respectively, amid concerns about overvaluation and uncertain productivity gains from AI investments; Nvidia rose 1.1%, partially offsetting losses.
- Other notable moves included Rivian Automotive dropping 15.1% after announcing a large share sale, Crinetics Pharmaceuticals nearly doubling on acquisition news, and SpaceX’s xAI business falling 5.2% after joining the Nasdaq 100.
- Rising oil prices following attacks on tankers in the Strait of Hormuz increased inflation worries and pushed Treasury yields higher, contributing to global market declines including a 4.9% drop in South Korea’s Kospi and losses in Japan and Germany.
