AI Favorites Lift Wall Street as Global Shares Decline

Basio badr

ago 5 hours

AI Favorites Lift Wall Street as Global Shares Decline

Global share markets faced a decline on Tuesday, despite earlier optimism surrounding advancements in artificial intelligence (AI) technologies. Traders opted to secure profits, causing significant sell-offs. Key European indices reported losses, while Asian markets followed suit.

European Markets Retreat

On the European front:

France’s CAC 40 fell by 1.3%, reaching 8,007.48.
Germany’s DAX decreased 1.5% to settle at 23,780.93.
Britain’s FTSE 100 slid 0.8%, closing at 9,624.57.

U.S. Market Outlook

Similarly, U.S. stock futures indicated a downward trend:

Dow futures dropped 0.8% to 47,112.00.
S&P 500 futures decreased nearly 1.0% to 6,816.50.

Asian Market Performance

In Asia, performance varied widely:

Japan’s Nikkei 225 dipped 1.7% to 51,497.20 post-holiday.
Australia’s S&P/ASX 200 fell by 0.9% to 8,813.70.
South Korea’s Kospi dropped 2.4% to 4,121.74.
Hong Kong’s Hang Seng retreated 0.8%, ending at 25,952.40.
The Shanghai Composite declined 0.4% to 3,960.19.

AI Stocks and Market Dynamics

Despite the downturn, AI-related stocks like Nvidia and Amazon have seen significant growth. However, there is increasing scrutiny regarding whether the surge in U.S. markets is justified. Many analysts warn that prices may be inflating to dangerous levels reminiscent of the dot-com bubble of 2000.

Nonetheless, the majority of companies have been meeting growth expectations. According to FactSet, approximately 80% of S&P 500 companies exceeded analysts’ profit forecasts during the current reporting season.