Analysts and investors react to AI market rout
QQQ•The Nasdaq fell 5.5% on Thursday, while South Korean stocks plunged 8% and Tokyo’s Nikkei dropped more than 6% on Friday. Market participants cited uncertainty over how a Democratic election sweep could affect AI investment and data-center construction.
1. Views on the selloff
Market participants said uncertainty over potential changes to data-center policy had added to an AI and technology selloff that some said was already underway. Shane Oliver of AMP said it was too early to know whether markets had bottomed, while Charu Chanana of Saxo cautioned that the election result did not necessarily mean an end to the AI boom. Other participants pointed to high valuations, positioning and the possibility of scaled-back data-center construction.
