Volatility shook Wall Street as concerns over tech companies’ earnings triggered the industry’s collapse. The stock market has seen an increase in negative trends. The S&P 500 and Nasdaq 100 indexes fell 1.2% and 1.7%, respectively. Shares of mega-capitalized companies suffered losses, and an exchange-traded fund tracking software developer stocks fell 4.2%.
Expert estimates
A selection of opinions on what is happening was prepared by ProFinance.Ru according to materials Bloomberg.
Adam Crisafulli from Vital Knowledge believes that artificial intelligence stimulates the economy through large-scale investments and increased productivity, but becomes a negative factor for the stock market. He argues that AI “collapses” the shares of traditional companies.
Ulrike Hoffmann-Burhardi of UBS Global Wealth Management points out that investor concerns about artificial intelligence continue to put pressure on various sectors. She advises investors to diversify portfolios and assess the AI market. In her opinion, companies that are actively using AI should benefit, especially in the financial and healthcare sectors.
Yardeni Research notes that fears of traditional companies being replaced by new players using artificial intelligence have negatively impacted stocks in various industries. Software developers, insurance brokers, data providers, alternative asset managers and investment brokers have been affected.
Christian Hoffmann of Thornburg Investment Management notes that the difference between the share prices of investment companies within the indices has increased. He also points to the significant impact of artificial intelligence on supply.
Hoffmann notes that “fear of software” remains a major AI-related theme and is reflected in bond markets. As these fears are reassessed, investors are reassessing assets and analyzing their underlying holdings more closely.
