Nasdaq-100 falls 6.4%, wiping out $2.5 trillion
By the AFREEQUE newsroom, based on Tunisia Online
The Nasdaq-100 fell 6.4% on 5 November, wiping out about $2.5 trillion in market capitalisation in one session. Nvidia fell 9% and AMD 17%, while investors questioned massive investments linked to artificial intelligence, according to Tunisia Online.
The Nasdaq-100 fell 6.4% on Thursday 5 November, wiping out about $2.5 trillion in market capitalisation in a single session, as the correction in artificial intelligence-related stocks accelerated. The Nasdaq Composite fell 5.52% and the S&P 500 4.36%, reports Tunisia Online.
Semiconductor stocks were particularly hard hit: Nvidia fell 9%, AMD 17% and the US semiconductor index 12%, reaching its lowest level in more than six months. CoreWeave fell about 10%, while the cost of its default insurance reached a record high. Amazon and Alphabet limited their declines to about 2.2% each.
The correction comes as investors question the level of spending required for the data centres, processors, networks and electricity used for artificial intelligence, as well as their ability to generate revenue, margins and cash flow. The Democrats' victory in both chambers of the US Congress has also increased regulatory uncertainty around some data centre projects, particularly regarding electricity and water consumption.
The new decline extends the market movements reported after the US elections, with tech stocks losing $1 trillion on 6 November and the Nasdaq losing more than 5% in the previous sessions.
