AI-Led Stock Market Rally Shows Signs of Collapse as NASDAQ Drops 4.2%
By
Robert Kuttner
Crackling crust, pillowy middle. The kind of bagel that earns a second cup of coffee.
Summary
The stock market experienced a significant downturn, with the NASDAQ falling 4.2% in a single day, erasing about $1.2 trillion in market value. The decline was driven by concerns over inflated valuations of AI and tech companies, coupled with rising inflation. Major chipmakers like Micron, Marvell, Intel, AMD, Qualcomm, and Arm Holdings saw losses exceeding 10%, while Nvidia dropped over 6% and Broadcom nearly 8%. The article examines whether the AI-driven market rally has created a bubble that may be starting to deflate.
Key quotes
· 3 pulledThe stock market suffered a big lurch last Friday, leading some to wonder if it's on the verge of a more serious collapse.
The tech-heavy NASDAQ fell by about 4.2 percent, dragged down by losses of over 10 percent in major chipmakers.
The declines erased about $1.2 trillion in market value in a single day.
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