Chip selloff drags global stocks lower on AI spending concerns
SPY•SPY•SPY•SPY•Global stocks fell as a semiconductor selloff and concerns about AI infrastructure spending weighed on markets. The S&P 500 dropped 3.4%, the Nasdaq fell 5.2% and the Philadelphia Semiconductor Index slumped 11%.
Global stocks fell on Thursday after weak Qualcomm earnings and concerns that a Democrat-controlled US Congress could slow investment in AI infrastructure. The Dow fell 2.2%, the S&P 500 slid 3.4% and the Nasdaq dropped 5.2%, while the Philadelphia Semiconductor Index slumped 11%.
Qualcomm shares fell 11% after smartphone chip sales missed Wall Street estimates. Candidates who opposed data centre expansion and campaigned for moratoriums on new developments won in Texas and Georgia, adding to concerns about AI-related infrastructure spending.
Brent crude rebounded about 2.6% to $97 a barrel as investors refocused on uncertainty about the US war with Iran. The 10-year Treasury yield was down 1.22 basis points at 4.88%, while gold traded above $4,100 an ounce after rising 5% in two days.
