Shares are mostly lower in Asia following another sell-off of artificial-intelligence stocks that dragged the U.S. market sharply lower. U.S. futures advanced and oil prices gained more than $1 a barrel. Tokyo’s Nikkei lost 0.5% to 63,878.60, while the Kospi in South Korea was also down 0.2%, at 7,720.75. Hong Kong’s Hang Seng edged 0.2% higher, to 24,468.82, but the Shanghai Composite index fell 0.2% to 3,983.80. In Australia, the S&P/ASX 200 likewise shed 0.2% to 8,632.50.Taiwan’s Taiex slipped 0.4%. On Wednesday, Wall Street’s former superstars continue to face heavy scrutiny.The S&P 500 dropped 1.6% for its first back-to-back drop in three weeks. Closing at 7,266.99, it’s back to where it was in early May. The Dow Jones Industrial Average tumbled 953 points, or 1.9%, to 49,918.78. The Nasdaq composite led the market lower with a 2% slide, to 25,169.50.
Wall Street has been shaky since last week, when AI stocks went from roaring to records to suddenly turn lower. Among the worries is that their prices may have shot too high, too fast because of AI mania. The question now is whether the break lower has cleared out excessive optimism that may have built into their stock prices, or if it’s the start of a longer downturn.
