Nvidia slumps to weigh down Wall Street, ASX set to fall
The US stock market is also falling as Nvidia and other superstars continue to languish in the AI technology craze.
The S&P 500 fell 1.3 percent in afternoon trading, falling further from the all-time high it set late last month. The Dow Jones lost 471 points, or 1 percent, from the previous day’s record, while the Nasdaq composite fell 2 percent in afternoon trading.
The ASX is bracing for heavy declines on Friday. Credit: Louie Douvis
The Australian share market is poised to fall, with futures pointing to a loss of 108 points, or 1.2 per cent, at the open at 4.54pm AEDT. ASX fell 0.5 per cent on Thursday
Nvidia was the heaviest weight in the market following the chip company’s 4.1 percent loss. Other AI enthusiasts also struggled, including declines of 6.4 percent for Super Micro Computer, 5.1 percent for Palantir Technologies and 4.9 percent for Broadcom.
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Questions are growing about how much more superstar AI stocks can add to their already eye-popping gains. Earlier this month, Palantir, for example, was up a stunning 174 percent for the year so far.
Such sensational performances were one of the key reasons why the US market reached records despite a slowing job market and high inflation. But AI stock prices have risen so much that they are also being compared to the 2000 dot-com bubble, which ultimately burst and dragged the S&P 500 down by nearly half.
Meanwhile, Wall Street is waiting to see whether new news about the health of the economy will be good or bad.
The U.S. government is reopening after a six-week shutdown, the longest in history. The stock market was mostly higher at the close, as it often has historically, but Wall Street is bracing for potential volatility as the government begins releasing major job market updates and other signals about the economy’s strength.
