Financial markets in the US and Asia have fallen sharply as investors sell off shares in technology companies, with artificial intelligence (AI) stocks hit particularly hard.
In Wednesday’s trading in New York, the S&P 500 lost 2.3% and the tech-heavy Nasdaq fell 3.6%, in their biggest one-day falls since 2022. The Dow Jones Industrial Average dropped by 1.2%.
The losses were driven by major firms including Nvidia, Alphabet, Microsoft, Apple and Tesla.
On Thursday, Japan’s Nikkei index led declines in Asia as it fell by more than 3%.
Shares in technology companies, especially those related to AI, have driven much of this year’s stock market gains.
AI chip giant Nvidia, which has been one of the main beneficiaries of the AI boom, saw its shares drop 6.8%. It has lost about 15% of its value in the last two weeks.
The company is set to report financial results at the end of August.
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