Stock markets tumble amid jitters over tech companies’ growth

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Losses in Europe and Asia are driven by AI-related groups including Nvidia, Tesla and Google-owner Alphabet

Stock markets in Europe and Asia took a tumble on Thursday as jitters over the future artificial intelligence-driven growth of major tech companies sparked a global sell-off.

The pan-European Stoxx 600 closed the day down 0.7%, having been hit by a near 4% decline in the Dutch chipmaker ASML, a 7% drop in Germany’s Infineon Technologies, and a 13.7% fall in Switzerland’s semiconductor company STMicroelectronics., where the tech-focused Nasdaq fell 3.6% on Wednesday, marking its biggest single-day decline since 2022. About $1tn was knocked off the value of the Nasdaq 100, which covers the most valuable firms on the index., whose shares have soared in recent months.

The fall has raised concerns about whether excitement over major tech stocks, known as the magnificent seven, has been overblown.fell 7%, Alphabet fell 5%, Microsoft dropped 3.5% and Apple lost 3%. Other magnificent seven stocks also fell, including Facebook owner Meta, which dropped 5.6%.and pushed back plans to unveil self-driving robotaxis from August to October, igniting scepticism among investors.

However, the AJ Bell investment analyst Dan Coatsworth said the sell-off may be a “necessary correction”. He added: “It is worth putting last night’s weakness into perspective, given indices were recently trading at record highs and there were big moves in some enormous companies.

 

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