US Stocks Suffer Worst Day Since June as Tech Sell-Off Deepens

Concerns over whether hundreds of billions of dollars in artificial intelligence investment will generate enough profit and productivity pushed US stocks lower as the technology sell-off deepened.

The S&P 500 fell 1.8 per cent, marking its worst day since June. The decline also ended with the index closing out a third straight losing week.

Technology stocks lead the fall

Technology stocks were at the centre of the sell-off as worries grew that Wall Street’s frenzy around artificial intelligence had pushed prices too high. The weakness in the sector dragged the Nasdaq composite down 2.9 per cent, the biggest decline among the major indexes cited.

The Dow Jones Industrial Average fell 572 points, or 1.1 per cent. The moves reflected broader unease about the scale of spending on artificial intelligence and whether it will deliver enough financial returns and productivity gains.

Market remains near record high

Despite the latest losses, the US stock market remains only 3.1 per cent below its all-time high. That rise has boosted the value of workers’ 401(k) accounts.

At the same time, the market has become increasingly shaky as Tuesday’s midterm elections in the US approach. The latest decline therefore comes as Wall Street weighs both the high valuation of technology stocks and the expected benefits of artificial intelligence investment.

Source: South China Morning Post