Tech stocks tumble 2.6% as expensive AI borrowing takes toll
Nasdaq fell 2.6% as concerns mount that costly debt for data centres and AI chips threatens the sector's boom.
The Nasdaq composite tumbled 2.6% on Thursday as AI stocks globally lost ground. Concerns about expensive borrowing to build data centres and buy AI chips threaten the sector's boom.
Major tech stocks fell hard: Nvidia dropped 4.4%, Lam Research fell 11.8%, and Meta slid 7%. The S&P 500 dropped 1.2%, its worst day since July, even as most individual stocks rose.
Oil prices climbed to a five-month high of US$111.99, up 2.9%, on uncertainty about when the war with Iran will allow the global energy industry to return to normal.
- 2.6%
- Nasdaq decline
- 1.2%
- S&P 500 decline
- US$111.99 per barrel
- Oil price high
- 11.8%
- Lam Research drop
Why it mattersTech stock weakness ripples through global markets and investment portfolios, while rising oil prices push up fuel and energy costs worldwide.
AustraliaAustralian share prices are set to fall when markets open, with futures pointing to a 0.2% loss, and the weaker Australian dollar makes imported goods and overseas trips more expensive.
✓ Claims checked against the source and corrected before publish. checked 53 min ago
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