AI stock falls drag markets worldwide as oil prices jump

Summarised from 2 outlets · Updated 23 Oct, 05:32 · Archive

Asian shares fell as artificial-intelligence stocks tumbled globally, giving the S&P 500 its worst day since July.

Asian shares were mostly lower after artificial-intelligence stocks fell sharply worldwide, giving the benchmark S&P 500 its worst day since July. Tokyo's Nikkei 225 lost 1.7 per cent to 61,825.26, while South Korea's Kospi declined 2.4 per cent to 5,403.32. Hong Kong's Hang Seng climbed 0.2 per cent to 22,983.80 and the Shanghai Composite index slipped 1.3 per cent to 3,610.52. Australia's S&P/ASX 200 shed 0.2 per cent to 8,777.00.

On Thursday, the S&P 500 fell 1.2 per cent and the Nasdaq composite tumbled 2.6 per cent. The weakness for technology stocks masked strength for the rest of the U.S. market, where the majority of stocks actually rose, with the Dow Jones Industrial Average adding less than 0.1 per cent.

AI-related stocks have been volatile as investors worry that the boom may be under threat because of how expensive it has become to borrow money to build data centers and buy more AI chips. Investors fear prices shot too high during a yearslong frenzy, even though companies in the industry continue to report growth. Meta Platforms lost 7 per cent after reporting stronger revenue for the latest quarter than analysts expected, though its profit fell short. The company also said it is creating a new class of stock to raise money to pay for AI investments and other expenses.

Oil prices were at their highest levels since May on worries about the war with Iran, with Brent crude up 0.5 per cent at $113.73 per barrel and U.S. benchmark crude oil up 0.6 per cent to $100.08 per barrel.

How it is being reported

• Asian shares slip as sharp drops for AI stocks overwhelm markets worldwide and oil prices jumpAsian shares are mostly lower after the latest shudder for artificial-intelligence stocks weighed on markets around the world, giving the benchmark S&P 500 its worst day since July.Clickorlando · 23 Oct, 04:54
• Asian shares slip as sharp drops for AI stocks overwhelm markets worldwide and oil prices jumpAsian shares are mostly lower after the latest shudder for artificial-intelligence stocks weighed on markets around the world, giving the benchmark S&P 500 its worst day since July.News4Jax · 23 Oct, 04:54

In this story: S&P 500 · Nikkei 225 · Meta Platforms · Tokyo · South Korea · Hong Kong · Shanghai · Australia

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