{"id":700990,"date":"2026-07-20T04:30:27","date_gmt":"2026-07-20T04:30:27","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/700990\/"},"modified":"2026-07-20T04:30:27","modified_gmt":"2026-07-20T04:30:27","slug":"ai-hype-seems-to-be-cooling-as-tech-stocks-dramatically-plunge","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/700990\/","title":{"rendered":"AI hype seems to be cooling as tech stocks dramatically plunge"},"content":{"rendered":"

\"(Getty)\"<\/a> (Getty) <\/p>\n

Tech stocks have plunged amid increasing concern that the AI<\/a> bubble could be bursting. <\/p>\n

The US S&P 500 and Nasdaq fell dramatically in the morning, apparently because of concern that the investment in artificial intelligence<\/a> could fail to deliver. <\/p>\n

It came amid news of a new, powerful AI model from China that led to suggestions the US’s control over the technology<\/a> could be threatened. <\/p>\n

After a blistering run that lifted main stock indexes to record highs, investors have started to retreat from crowded semiconductor trades over worries about the scale of AI-related spending. <\/p>\n

Chip stocks, broadly, extended the previous session’s weakness, with heavyweight Nvidia down 1.4%. <\/p>\n

This decline combined with an early gain in Apple, pushed the iPhone maker ahead of Nvidia \u2060to briefly become the world’s most valuable company. <\/p>\n

The Philadelphia SE Semiconductor \u200bindex \u2060fell 1.8% and was set for its worst week since March. The gauge has shed more than 20% from its late June record high. <\/p>\n

“It does feel very much a chip \u2060stock-driven move, just sort of hurting sentiment more broadly.” Fiona Cincotta, senior markets analyst at City Index, said. <\/p>\n

Chinese \u200bAI startup \u2060Moonshot unveiled Kimi K3, a 2.8 trillion-parameter \u200cmodel it said was the world’s largest open-weight AI, adding to investors’ concerns over whether hefty spending by heavyweights will deliver tangible results. <\/p>\n

“The latest development is the competition from open source models in China, which raised \u200csome competitive fears,” Angelo Kourkafas, senior global investment strategist at Edward \u200cJones Investments said. <\/p>\n

“Supposedly, there are some offerings that are rivaling the performance of Anthropic and OpenAI… potentially that is contributing today to some of that weakness that started in Asia.” <\/p>\n

All three main indexes were poised for weekly losses, as an upbeat start to second-quarter earnings and \u2060benign inflation data were overshadowed by concerns over the chip sector. <\/p>\n

Netflix forecast third-quarter results below Wall Street estimates, sending shares of the streaming giant down 9 per cent. The losses weighed heavily on the communication services sector , which fell 2.4 per cent. <\/p>\n

The CBOE Volatility Index, Wall Street’s fear gauge, rose 1.30 points to 18.03 \u2014 the highest in more than a week. <\/p>\n

At 10.10 am local eastern time, the Dow Jones Industrial Average rose 4.56 points, or 0.01 per cent, to 52,557.53, the S&P 500 lost 43.71 points, or 0.58 per cent, to 7,490.05 and the Nasdaq Composite lost 323.79 points, or \u200c1.25 per cent, to 25,558.15. <\/p>\n

The tech-heavy Nasdaq hit a three-week low earlier in the session, before cutting \u200bsome losses. <\/p>\n

Risks from the Middle East conflict continued to loom large as the United States \u200cstruck bridges and an airport in Iran and Tehran \u2060responded by hitting a power and desalination plant in Kuwait. <\/p>\n

US consumer sentiment, however, increased to \u2060a five-month high in July, but that is likely temporary as the renewed US-Iran tensions raises gasoline prices. <\/p>\n

Among other movers, Intuitive Surgical shares \u200cslid nearly 11.4 per cent after the medical \u200bdevice maker kept its da Vinci procedure-growth forecast unchanged \u200cand warned insurance-plan changes may be delaying patient care. <\/p>\n

Declining \u200bissues outnumbered advancers by a 1.24-to-1 ratio on the NYSE and by a 1.55-to-1 ratio on the Nasdaq. <\/p>\n

Additional reporting by agencies <\/p>\n","protected":false},"excerpt":{"rendered":"(Getty) Tech stocks have plunged amid increasing concern that the AI bubble could be bursting. The US S&P…\n","protected":false},"author":2,"featured_media":700991,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,4221,5041,86,56,54,55],"class_list":["post-700990","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-nasdaq","tag-tech-stocks","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/700990","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=700990"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/700990\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/700991"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=700990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=700990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=700990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}