AI<\/a> boom were among the biggest fallers on Wall Street. Chipmaker Nvidia fell 3.5 per cent, while Microsoft, Amazon and Meta all fell about 3 per cent. <\/p>\nStock markets globally have risen sharply this year, but the rally has stalled as a growing number of investors warn that lofty valuations of leading US AI stocks are becoming detached from the fundamentals.\u00a0<\/p>\n
\u201cThere\u2019s no question, we\u2019re getting to a more late-cycle stage [of the market rally],\u201d said Johanna Kyrklund, group chief investment officer at Schroders, pointing to \u201cextended valuations\u201d and a \u201cfrothy, somewhat bubble environment\u201d.\u00a0<\/p>\n
\u201cWe still have exposure to these stocks,\u201d Kyrklund said, but added that \u201cI wouldn\u2019t advocate a passive exposure to this [AI] space at the moment.\u201d<\/p>\n
Investors said Nvidia\u2019s earnings announcement, due on Wednesday, would be a key moment for markets. Peter Thiel\u2019s hedge fund, Thiel Macro, dropped its entire exposure to Nvidia in the third quarter, according to recent filings that gave a snapshot of holdings at the end of September.\u00a0<\/p>\n
\u201cThe renewed sell-off in US tech stocks puts even more of a spotlight on the earnings report of AI bellwether Nvidia,\u201d said Jonas Goltermann, deputy chief markets economist at Capital Economics. \u201cIt will set the tone for the wider tech sector over the coming few weeks into the year-end.\u201d<\/p>\n
The Nasdaq has fallen more than 5 per cent so far in November, putting it on track for its first monthly fall since March, when the scale of Donald Trump\u2019s tariff regime sent shockwaves through markets.\u00a0<\/p>\n
European and Asian stocks also dropped on Tuesday. The tech-heavy South Korean Kospi index fell 3.3 per cent and the Hang Seng in Hong Kong shed 1.7 per cent.<\/p>\n
The Stoxx Europe 600 was 2.1 per cent lower by mid-afternoon on Tuesday and Germany\u2019s Dax fell 1.8 per cent.\u00a0<\/p>\n
Investors will also be watching the September US jobs report on Thursday, which was delayed by the longest-ever shutdown of the federal government. <\/p>\n
The December Federal Reserve decision is now on a knife edge, with traders divided 50-50 about whether the central bank will cut or hold rates, compared with expectations a month ago that a cut was nearly assured. <\/p>\n
Higher rates tend to be negative for quickly growing companies. <\/p>\n
The market moves come as Home Depot, the US DIY chain, warned on Tuesday morning that economic uncertainty was weighing on its sales. Its shares slid more than 3 per cent. <\/p>\n
Government bonds rallied as investors moved away from\u00a0riskier assets. The yield on the 10-year US Treasury fell 0.05 percentage points to 4.08 per cent. Yields move inversely to prices. <\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the US equities myFT Digest — delivered directly to…\n","protected":false},"author":2,"featured_media":146594,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":{"0":"post-146593","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-ie","12":"tag-ireland","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/146593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=146593"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/146593\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/146594"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=146593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=146593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=146593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}