Market Turmoil: Nasdaq Plunges Amidst AI Cost Warnings
Global stock markets dropped sharply, led by declines in Nasdaq as Meta and Microsoft warned of rising AI costs. The dollar weakened slightly amidst expectations of Fed rate cuts. Investors focus on upcoming earnings reports and U.S. jobs data amidst heightened economic uncertainty.
Global stock indexes experienced a significant drop on Thursday, with the Nasdaq falling over 2% following warnings from Facebook owner Meta Platforms and Microsoft about rising artificial intelligence costs. This development added to investor concerns about the return on massive AI investments.
Meta's shares fell by 4.1%, while Microsoft's plunged 6%, negatively impacting both Nasdaq and S&P 500. Market analysts are keenly awaiting results from Amazon.com and Apple expected post-market closure.
In the currency market, the dollar weakened as data indicated US consumer spending rose more than anticipated in September, hinting at robust economic growth. Additionally, the euro strengthened against the dollar, prompting further caution over European Central Bank interest rate cuts.
(With inputs from agencies.)