AI stocks drag world markets lower as Nasdaq falls 2.6%

AI-linked stocks pulled markets lower worldwide on Thursday, with the Nasdaq Composite dropping 2.6% to 26,008.86 and the S&P 500 falling 1.2% to 7,663.43, according to BNN Bloomberg, citing AP.

The report said the S&P 500 had its worst day since July. The Dow rose 11.89 points to 52,867.98. Two of every three S&P 500 stocks rose, but losses in big technology companies masked the gains.

Nvidia fell 4.4%. The report said that as the largest US company by market value, it was the biggest drag on the S&P 500.

Meta lost 7% after its revenue beat expectations but its profit missed. The company also plans a new stock class to fund AI spending, the report said.

CoreWeave dropped 10.1% amid concerns about the debt it took on to buy Nvidia chips. Lam Research fell 11.8% despite stronger-than-expected results. Its profit forecast midpoint came in slightly below analyst estimates, and the stock had risen 52.4% this year. Tesla fell 3.1% after a stronger-than-expected profit but weaker revenue than forecast.

Markets in Asia and Europe also fell. South Korea's Kospi dropped 3.5%, Hong Kong's Hang Seng 3% and Japan's Nikkei 225 2.7%. France's CAC 40 fell 1.4%.

Brent crude rose 4% to $113.17, its highest in five months, amid uncertainty over the war with Iran. The 10-year Treasury yield fell to 4.97% from 5.13%.

The report said AI-related stocks have been swinging on worries that their boom may be under threat. Analysts cited in related coverage point to the rising cost of borrowing to build data centres and buy chips. The notes give no further timetable for markets or for the companies named.