A sudden sell-off of major technology shares has caused ripples in financial markets and sparked concerns over the sustainability of the boom in AI.
The tech-focused Nasdaq index dropped around 3% by the close of trading on Tuesday, with the newly public SpaceX also facing an "incredibly choppy" session, the BBC reports.
The Times reports the sell-off was triggered by a Bank of America report predicting the Federal Reserve will raise interest rates three times this year to counter rising inflation in the US.
In South Korea's Kospi market, double-digit drops were recorded by Samsung Electronics and SK Hynix, which manufacturers microchips for Nvidia, Apple and Microsoft.
In Europe, global semiconductor manufacturer ASML closed down 5.7% and Raspberry Pi fell 14%.
On Wall Street, the biggest AI-focused stocks had billions of dollars wiped from their value, with chipmakers Sandisk and Micron Technology falling 13.6% and 12,9% respectively.
Goldman Sachs, The Times reports, compared the current tech market with the 1990s tech bubble, noting that “tension between favorable fundamentals and high valuations continues to grow”.
FSTE100
The UK's flagship share index, the FTSE 100, was up 72 points at 10,435 shortly after opening this morning.
Brent crude oil futures were down 1.05%, sitting at $75.99 a barrel this morning.
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