Shares in AI data centre infrastructure company CoreWeave fell 3.6% after plunging 15.5% on Wednesday.<\/p>\n
The company is a big client of Nvidia chips and Nvidia is a major shareholder.<\/p>\n
The Nasdaq Composite, which has the heaviest exposure to tech stocks, shed 0.3%.<\/p>\n
The blue-chip Dow rose, however.<\/p>\n
\u201cRotation out of highly speculative AI infrastructure into established sectors helped the Dow gain over half a percentage point,\u201d said IG analyst Axel Rudolph.<\/p>\n
European stock markets were more resilient, benefiting from their lower exposure to the tech sector.<\/p>\n
Seoul and Tokyo bore the brunt of the selling in Asia as traders bailed out of chipmakers, tracking sharp losses on Wall Street on Wednesday.<\/p>\n
Seoul\u2019s Kospi dived more than 8% \u2013 leading to a brief trading halt \u2013 before slightly paring the losses, with semiconductor firm SK hynix sinking more than 11% and Samsung more than 9%.<\/p>\n
Tokyo shed close to 5%, driven by sharp falls for Advantest, Kioxia and investment titan SoftBank.<\/p>\n
\u201cThe tech sell-off has continued with pace, exacerbated by US inflation data which increased expectations for US interest rate hikes this month,\u201d said Dan Coatsworth, head of markets at AJ Bell.<\/p>\n
\u201cUS Treasury bond yields fell, suggesting that investors are moving into supposed lower-risk assets,\u201d he added.<\/p>\n
Markets, already struggling with concerns about the outlook for the AI investment boom, were stung after data released on Wednesday showed the US consumer price index jumped more than expected to 3.7% in September.<\/p>\n
Figures released on Thursday showed US wholesale inflation surged past analysts\u2019 expectations in September \u2013 the 6.3% increase from one year ago \u2013 marking its biggest year-on-year jump since 2022 as petrol prices rocketed because of the war with Iran.<\/p>\n
The inflation figures put pressure on the Fed to raise rates at least once more following September\u2019s hike.<\/p>\n
The bank\u2019s decision is due on October 28, a week before the US midterm elections.<\/p>\n
Tech firms rely heavily on borrowing to fund their huge AI investments, meaning they are particularly sensitive to higher interest rates.<\/p>\n
Saxo UK investor strategist Neil Wilson pointed to \u201cworries about the AI buildout, bubbly valuations, lower-than-expected earnings growth at leading US frontier labs, Chinese competition\u201d as additional factors behind the tech selling.<\/p>\n
Key figures <\/p>\n
New York – Dow: UP 1.0% at 52,124.81 points<\/p>\n
New York – S&P 500: UP less than 0.1% at 7,725.39<\/p>\n
New York \u2013 Nasdaq Composite: DOWN 0.3% at 26,604.01<\/p>\n
London \u2013 FTSE 100: UP 1.1% at 10,840.35 (close)<\/p>\n
Paris \u2013 CAC 40: UP 0.8% at 7,934.70 (close)<\/p>\n
Frankfurt \u2013 DAX: UP 0.3% at 25,382.62 (close)<\/p>\n
Seoul \u2013 Kospi: DOWN 7.6% to 5,554.22 (close)<\/p>\n
Tokyo \u2013 Nikkei 225: DOWN 4.9% to 64,425.95 (close)<\/p>\n
Hong Kong \u2013 Hang Seng Index: DOWN 1.0% at 24,062.72 (close)<\/p>\n
Shanghai \u2013 Composite: DOWN 1.6% at 3,707.48 (close)<\/p>\n
Brent North Sea crude: UP 0.3% at US$106.35 ($189.49) per barrel<\/p>\n
West Texas Intermediate: UP 2.5% at US$97.50 per barrel<\/p>\n
Euro\/dollar: UP at US$1.1204 from US$1.1147 on Wednesday<\/p>\n
Pound\/dollar: UP at US$1.3248 from US$1.3189<\/p>\n
Dollar\/yen: DOWN at \u00a5158.16 from \u00a5158.37<\/p>\n
Euro\/pound: DOWN at 84.56 pence from 84.57 pence<\/p>\n
– AFP<\/p>\n","protected":false},"excerpt":{"rendered":"Shares in AI data centre infrastructure company CoreWeave fell 3.6% after plunging 15.5% on Wednesday. The company is…\n","protected":false},"author":2,"featured_media":631782,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[6030,806,6213,138,15293,3105,219,14051,5760,309703,51584,1943,12469,321,111,139,69,90,34864,2515,19257,7676,10665,25259,60045,643,71294,5424,370,1361,28050,13558,37458,14932,6730],"class_list":["post-631781","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-again","tag-as","tag-asian","tag-business","tag-continued","tag-data","tag-economy","tag-federal","tag-force","tag-forecasttopping","tag-hot","tag-inflation","tag-interest","tag-investors","tag-new-zealand","tag-newzealand","tag-nz","tag-on","tag-plunged","tag-raise","tag-rate","tag-rates","tag-reserve","tag-rolls","tag-selloff","tag-stocks","tag-stokes","tag-street","tag-tech","tag-that","tag-thursday","tag-wall","tag-worried","tag-worries","tag-would"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/631781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=631781"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/631781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/631782"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=631781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=631781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=631781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}