AI-driven profit worries spark global tech sell‑off, dragging Nasdaq, Seoul and Milan indices lower
Executive summary: Concerns that AI may not deliver immediate profits prompted a sell‑off in tech stocks worldwide, with the Nasdaq down 2.21%, Seoul’s Kospi down 10%, Milan’s St index down 8% and SpaceX shares fluctuating around their placement price. The reaction signals a transition from AI hype to profit scrutiny, which could affect valuations, capital allocation and future AI‑related investment trends across sectors. Global equity investors, major tech firms (including SpaceX), Asian and European exchanges, and regulators monitoring AI developments. Upcoming earnings releases from AI‑heavy companies, possible guidance on AI profitability, and potential policy statements or regulatory updates concerning AI oversight.
Markets reacted sharply to renewed doubts about whether AI investments will translate into near‑term profits, triggering a broad‑based retreat in technology shares. The Nasdaq fell 2.21% while Seoul’s Kospi dropped 10% and Milan’s St index slipped 8%, with even SpaceX’s shares wobbling below their placement price before recovering. The move underscores a shift from pure AI enthusiasm to a focus on earnings viability, prompting investors to reassess exposure across the AI value chain.
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