The main US stock indices fell on Thursday after an initial wave of optimism surrounding Nvidia’s latest results. The S&P 500 index dropped 1.5% while the tech-heavy Nasdaq declined 2.2% as fears surrounding an AI bubble resurfaced. The Dow Jones Industrial Average fell 0.8%.
The strong sales reported by Nvidia had initially helped quell concerns about the possibility that markets are in a speculative AI bubble. This led to an early session bump as Nvidia’s shares jumped by almost 5%, boosting the Nasdaq and S&P 500. However, those early-day gains have now been wiped out, as the concerns surrounding an AI bubble re-emerged.
Matt Maley, chief market strategist at Miller Tabak + Co, told Bloomberg that investors had become concerned AI investments may fail to generate the profits they’re expected to going forward.
“As a result, people are saying, ‘I’ve got to take some chips off the table,'” Mr Maley said.
Bitcoin also fell sharply throughout the day, to prices last seen in April. It saw the cryptocurrency drop 5.5% throughout the day to £66,000, in a continuation of a slide that first started in October.
