Nasdaq Sell-Off Exposes the Hidden Gap in AI Profits
The Nasdaq sell-off deepened as doubts over AI spending, weak chip earnings and the threat of tighter AI regulation hit U.S. tech stocks.
Share this:
The Nasdaq sell-off deepened as doubts over AI spending, weak chip earnings and the threat of tighter AI regulation hit U.S. tech stocks.
Fawad Razaqzada, StoneX Media Market Analyst, explains why technology stocks missed the post-midterm rally and what the Nasdaq chart shows after the latest drop.
AI and tech stocks are selling off because cash spending on artificial intelligence is still surging while AI-driven profits fall short of lofty analyst expectations. The U.S. midterm elections added pressure, with many newly elected Democratic governors, attorneys general and lawmakers pledging to slow or halt construction of AI data centers. Semiconductor stocks led the decline, with Arm Holdings falling sharply after its earnings, Nvidia down 8% and Tesla down about 10%. On the chart, the Nasdaq has formed a sequence of lower highs and lower lows since its October peak, and the 200-day moving average sits among the levels traders are watching.
This content was created by an affiliate of FOREX.com and represents the views and opinions of the author/speakers, not the views and opinions of FOREX.com, StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by FOREX.com.
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Dollar forecast: NFP provides dollar, already supported amid tech sell-off, additional boost
The US dollar has found some mild amid the tech rout in recent days, most visibly against risk sensitive and commodity dollars. Today, we have so far seen a bit of a recovery in global indices from their overnight lows. Investors will be watching the markets to see whether fresh losses will be on the again once Wall Street gets going. Ahead of that, we have just seen the release of the October US non-farm payrolls report – and it was much stronger at 165K than expected.
Nasdaq Sell-Off Exposes the Hidden Gap in AI Profits
The Nasdaq sell-off deepened as doubts over AI spending, weak chip earnings and the threat of tighter AI regulation hit U.S. tech stocks.
Nikkei 225 bear market deepens as volatility surges
The Nikkei has entered a technical bear market following a historic plunge. RSI and ATR stretch readings suggest a bounce may be coming, but history carries a warning for dip buyers.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.