Aerial view of vehicles traveling on the road through the central business district of Beijing, China.
VCG | Visual Group China | Getty Images
from Japan Nikkei 225 dipped below the 50,000 mark on Wednesday amid a broader decline in Asian markets as investors fled AI-related stocks.
The Nikkei lost 3.48%, while the Topix lost 2.27%. In Japan, notable losers included Softbank Group Corp, which lost about 12%.
South Korea Kospi fell 5.97%, with chip heavyweights Samsung Electronics and SK Hynix posting losses of over 7% and 8% respectively. Small cap Kosdaq lost 5.39%.
that of Hong Kong Hang Seng Index fell 1.36%, mainland China’s CSI 300 index fell 0.9%.
Losses in the Australian S&P/ASX 200 index were relatively moderate at 0.77%.
In the United States, the S&P 500 index fell 1.17% to close at 6,771.55, while the Nasdaq Composite fell 2.04% to end at 23,348.64. The Dow Jones Industrial Average lost 251.44 points, or 0.53%, to 47,085.24.
Palantir shares lost about 8%, even after the software company beat Wall Street estimates for the third quarter and gave strong guidance, fueled by growth in its AI business.
The gains in AI stocks propelled the S&P 500’s forward price-to-earnings ratio above 23, near its highest level since 2000, according to FactSet.
While these stocks have carried the market to new highs in recent months, Ameriprise’s Anthony Saglimbene said in a CNBC interview that without a pullback, valuations start to get “really stretched.”
— CNBC’s Sean Conlon and Fred Imbert contributed to this report.
