Wall Street falls as tech and chip stocks slump sharply
Summarised from 2 outlets · Updated 5 Nov, 16:38 · Archive
US stocks have opened sharply lower as investors sold off shares in major technology and semiconductor companies.
US stocks have dropped sharply, with the Nasdaq poised to confirm correction territory as steep losses in chip and data centre-related stocks weighed heavily. The sell-off came a day after the Democrats' sweeping election victory had powered a broad-based rally.
Qualcomm fell 9.0 per cent after the chip maker fell short of Wall Street estimates for fourth-quarter smartphone chip sales, citing sluggish demand and declining Apple-related revenue. The broader semiconductor index was down 7.1 per cent, with losses in Nvidia, Advanced Micro Devices, Intel and Marvell Technology weighing the market. Data centre operators IREN, Hut 8 and Applied Digital fell between 6.0 and 11 per cent, while CoreWeave and Nebius Group shed 9.3 and 13.4 per cent respectively. Tesla dropped 9.5 per cent and Meta Platforms fell 3.4 per cent.
Analysts attributed the decline partly to concerns about artificial intelligence policy. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said there was 'now a chance that the two years of extra push from the Trump government for AI buildout will somehow be scaled back'. She added: 'We suspect there is going to be some scrutiny on this aggressive AI buildout.' Public opposition to the industry's rapid expansion in key data-centre states may also be contributing to the sell-off.
How it is being reported
- Wall Street opens lower as shares of tech firms slumpUS stocks have opened sharply lower as investors sold off shares in major technology and semiconductor companies.The West Australian · 5 Nov, 16:07
- Wall Street opens lower as shares of tech firms slumpUS stocks have opened sharply lower as investors sold off shares in major technology and semiconductor companies.Perth Now · 5 Nov, 16:07
In this story: Qualcomm · Nvidia · Meta Platforms · Tesla · Apple · Dell · Amazon · Nasdaq
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