The US stock market has lost $1trillion in value in four days, as a sell-off in tech companies continued on Wednesday.
The S&P 500 declined for the fourth consecutive yesterday amid fears that AI-driven stock market rally may be on the verge of collapse.
Nasdaq dropped as much as 1.8% during early trading on Wednesday, bringing its weekly losses to as much as 7% in its worst sell-off since April.
Although the index recovered some ground later in the day, it remained down nearly 1% by Wednesday afternoon.
Investor anxiety has been fueled by fears that AI-related companies are significantly overvalued, with some arguing they have little to show for the billions of pounds of investment that have been ploughed into companies such as OpenAI.
Nvidia, currently the world’s most valuable company with a $4trillion market cap, saw its shares fall 3.3% early Wednesday before regaining some losses. Overall, the stock was down 4.9% since Monday.
The Telegraph reports investors are fearing the “unpleasant popping sound” may be imminent for the artificial intelligence (AI) boom.
FTSE 100
The UK's flagship share index, the FTSE 100, was up 108-points at 9,288 shortly after opening this morning.
Brent crude oil futures were down 0.62% at $66.30 a barrel.