American stock markets opened lower on Thursday, despite better-than-expected quarterly results from chip giant Nvidia. Investors are concerned about the sustainability of the AI rally and the risks that artificial intelligence poses to sectors such as finance and software. Technology stocks in particular came under immediate pressure.
The crypto market also took a hit: the Bitcoin price immediately lost more than one percent when Wall Street opened.
The broad S&P 500 index fell by more than one percent shortly after the opening. The tech-heavy Nasdaq 100 lost nearly two percent. This means that doubts about the AI hype seem to outweigh strong business results.
Nvidia under pressure, doubts about AI growth
Shares of Nvidia, the figurehead of the AI hype, fell by about five percent. This is striking, because the company presented better than expected figures. However, investors appear to be wondering whether the explosive growth in AI spending is nearing its peak.
Nvidia has played a major role in the rise of the American stock markets in recent months. When that particular stock falters, investors feel it immediately. Moreover, the doubts about AI extend beyond just chip companies. Software and communications services companies also opened lower.
Bitcoin price drops at Wall Street opening
It wasn’t just shares that took a hit. The Bitcoin price was immediately pulled down when the American stock market opened. Within a short time, BTC lost more than one percent.
That pattern is visible more often. At times when technology shares are under pressure, risky assets such as crypto also react sensitively. Investors then reduce their exposure to growth-oriented investments.
After the close of the fair, figures will be released from several technology companies, including CoreWeave, Autodesk, Dell Technologies and Intuit. Those results could further influence sentiment around tech and crypto.
Source: https://newsbit.nl/ai-paniek-op-wall-street-nvidia-trekt-beurs-omlaag-bitcoin-zakt-mee/
