US markets experienced a significant downturn Tuesday, fueled by escalating concerns regarding a potential speculative bubble surrounding artificial intelligence and triggered by a high-profile sell-off of Nvidia shares. The Dow Jones Industrial Average closed at 46,092 points, representing a 1.1% decrease from the previous trading day. The broader S&P 500 slipped 0.8% to approximately 6,617 points, while the Nasdaq 100 shed 1.2%, closing around 22,433 points.
The Nvidia sell-off, reportedly initiated by a prominent tech billionaire, has intensified anxieties among investors questioning the sustainability of current valuations within the AI sector. While Nvidia attempted to mitigate the negative sentiment by announcing a collaborative investment in Anthropic, the developer of ChatGPT rival Claude, alongside Microsoft, the move proved insufficient to fully restore confidence. Analysts are now scrutinizing whether the sector’s explosive growth is underpinned by genuine technological progress or driven by a frenzy of speculation.
The Euro weakened slightly against the US dollar, trading at $1.1580, reflecting broader economic uncertainties and potentially impacting transatlantic trade dynamics. The dollar’s stronger performance coincides with ongoing debates regarding US monetary policy and its ramifications for global exchange rates.
Gold prices, conversely, benefited from the market volatility, rising 0.7% to $4,070 per fine ounce, highlighting the ongoing demand for safe-haven assets amidst economic anxieties. This surge also suggests a degree of investor apprehension regarding the stability of other markets.
Brent crude oil prices saw a notable increase, reaching $64.93 per barrel, a 1.1% rise that indicates potential supply-side pressures and a re-evaluation of global energy demand projections. The increase introduces a new layer of complexity for policymakers grappling with inflation concerns and the need for stable energy prices.
