Good morning. And strap in if you own major tech stocks.
The tech-heavy Nasdaq closed yesterday down 1.4% in the biggest one-day drop in three weeks. Nvidia dropped 3.5%. Palantir sunk 9.4%. Arm was down 5%. AMD was down 5.4%.
The pain wasn’t limited to one exchange or market, either. NYSE-listed Oracle was down 5.9%. Bitcoin dropped 2.7%. The S&P 500 fell 0.7%. The markets in Japan, South Korea, and Hong Kong were all down, too.
Why? In a word: Jitters. That recent MIT report concluding that “95% of organizations are getting zero return” from generative AI investments may have started to sink in. OpenAI CEO Sam Altman’s recent remarks about investors getting burned in the AI bubble didn’t help, either. (Things investors don’t like to hear: “Some investors are likely to lose a lot of money.” 🥴)
Or maybe it’s just a small correction. Either way, hang tight. Today’s tech news below. —Andrew Nusca
