Losses spread globally as investors questioned soaring valuations and spending on AI infrastructure

A tech sell-off shook global markets on Tuesday as attention turned away from developments in the US war with Iran and toward the future of AIcompanies and chipmakers that have driven stock markets to record highs.

The tech-heavy Nasdaq index opened 2% lower on Tuesday. The Dow and S&P 500 were also down at opening.

All three major US indices have hit record highs this year, riding off a rush of funding to support AI technology and infrastructure. Nasdaq is up 10% for the year, while the Dow jumped 6% so far this year, breaching past 51,000 points, and the S&P 500 is up 7.3%.

  • Steve@startrek.website
    19·
    2 days ago

    Articles like this are just exhausting. Todays dip equals a single day of gains from [pick a day this month]

  • jaykrown@lemmy.world
    7·
    1 day ago

    The fact that there wasn’t a bigger sell off when they banned Fable 5 is ridiculous. The stock market doesn’t represent real conditions at all.

    • Womble@piefed.worldEnglish
      6·
      1 day ago

      Why would that trigger a sell off? It was an official US government stamp of approval that “These things are so dangerous and powerful we have to treat them as weapons.” It was bullshit but it played straight into Anthropic’s story.

      • jaykrown@lemmy.world
        2·
        23 hours ago

        In a “free market” it would be a worrying sign that the government can just tell one of the highest valued corporations “nope, we’re not permitting you to do that, your entire business model is dictated by us”. But we don’t have a free market, and the stock market doesn’t represent the reality of the situation, just like how valuations of AI companies keep going up even though something like GLM-5.2 exists. I think investors are probably just dumb, and we’re in a bubble.

  • iconic_admin@lemmy.world
    9·
    2 days ago

    I’m on the nothing ever happens train. The market fluctuates. Space x was down below offering then it was up again, now it’s at like 156. The market goes down it goes up. Nothing changes.

  • AllNewTypeFace@leminal.space
    206·
    2 days ago

    Meanwhile, AAPL is more or less steady, and certainly not plummeting in formation with the hyped AI stocks. I bet their investors are feeling good about being left behind.

    • Auli@lemmy.caEnglish
      41·
      2 days ago

      Apples nextOss is heavy into AI. Everyone acts like they’re outsmarted everyone. They failed I’m not saying it won’t work out but they tried to get into AI 2 years AFO and it didn’t work.

      • hitmyspot@aussie.zone
        41·
        1 day ago

        Some think that means they recognised the hype doesn’t match the ability. They are incorporating ai, but licenced it instead of huge capex to do their own. They can just cancel it in the future.