Nasdaq falls 2.9% amid AI concerns and rising oil prices — Fortune
Asian and European stock markets mostly declined on October 23 after a sell-off in U.S. equities, where the S&P 500 lost 1.21% and the Nasdaq fell 2.9%. Fortune reports that the technology sector faced the greatest pressure: shares of AI cloud-computing provider CoreWeave fell 10.06%, while Meta shares declined 6.98%.
Concerns over AI and oil
Investors remain concerned about companies linked to artificial intelligence. These concerns were intensified by reports that OpenAI, under pressure from private-equity investors, had to lower its desired valuation in a new fundraising round from $1.4 trillion to $1.25 trillion.
Deutsche Bank analyst Jim Reid said in a letter to Fortune that all the sources of instability from recent weeks had collided at the same time. Brent rose to $114 per barrel before retreating to $113. This followed a Financial Times report saying that U.S. President Donald Trump’s envoy to the UN had stated that the United States was prepared to wage war with Iran for at least another year.
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French bonds and indices
The yield on France’s 10-year government bonds rose to a new high of 5.1% before declining to 5.05%. According to Fortune, investors are demanding a higher risk premium due to doubts about the French government’s plan to overcome the budget crisis. At the same time, the yield on 10-year U.S. Treasury bonds fell to 4.9% after a recent peak above 5.3%.
At the start of trading in Europe, the Stoxx 600 lost 0.36%, while the UK’s FTSE 100 fell 0.56%. In Asia, Japan’s Nikkei 225 declined 0.34%, India’s Nifty 50 fell 0.96%, while China’s CSI 300 gained 1.71%. Bitcoin dropped to $81,683. Nasdaq futures rose 0.28% before the opening of trading in New York, while S&P 500 futures were almost unchanged.
Chris Beauchamp, chief market analyst at the IG platform, noted that the Nasdaq 100 was at a record level just a few weeks ago and had risen 20% over the year. In his view, the current decline should be seen as a correction rather than a crash.
