GoKawiil
Tech News
A recent decline in AI-related stocks has pushed the S&P 500 about 6% below its record high, a relatively mild pullback by historical standards. Tech shares fell harder, with the Nasdaq down 11% and chip stocks down 36%, a drop comparable to the 35% chip-sector decline seen during the Covid crash. The tracking data is being updated daily.
A newspaper opinion column contends that what people call stock-market bubbles are not cases of irrational exuberance correcting itself, but rather markets resolving genuine uncertainty about the future. The author draws a parallel between current market conditions and the dot-com era of 1999 to make this case.
Voters are casting ballots today in midterm elections that will determine which party controls Congress for the remainder of President Trump's second term. The outcome is expected to influence not just political dynamics in Washington but also business conditions and financial markets.
Historical data shows the stock market has typically posted strong gains in the months following U.S. midterm elections, regardless of which party wins. Analysts caution that this year's unusual economic uncertainty could make the typical post-election pattern less reliable.
Market experts note that U.S. stocks have historically risen in the months following midterm elections, with the S&P 500 gaining an average of 13.7% in the year after midterms since 1980, according to a CNBC analysis. However, some experts are warning that 2026 could break from this historical pattern due to unusually difficult conditions this cycle.
A sharp selloff has hit China's AI-related equities, with Goldman Sachs estimating such stocks make up 42% of total market capitalization and 57% of trading turnover. Traders cited elevated valuations, new tax bills, and fears that foreign governments could restrict exports of data center equipment to China as triggers, though no single catalyst was identified. Investment managers quoted by Reuters described the pullback as the bursting of a bubble built on overweighting tech firms in major indexes.
Gains tied to artificial intelligence companies have contributed an estimated $138 billion to the investment portfolios of 13 public pension funds since 2022, according to reporting on the funds' performance. The rally has helped these funds recover from losses tied to the last financial crisis, even as some politicians grow more critical of the AI industry.
SpaceX's third-quarter earnings exceeded Wall Street expectations, producing an unexpected profit that analysts described as a blowout result. Elon Musk responded by declaring that a previously stated ambitious goal is now within reach, without detailing specific figures or timelines in the reporting.
CoreWeave's stock has fallen more than 25% over the past week as investors grow wary of the company's debt load and the broader 'neocloud' business model. The decline comes amid a wider pullback in AI-related stocks this week, driven by growing market anxiety over heavy spending in the sector.
Anthropic reportedly briefed prospective investors in San Francisco that its revenue rose 45% to $16.8bn in the three months ending September, up from $11.6bn in the prior quarter and $4.7bn at the start of the year. The AI company, maker of Claude, is said to have posted a profit for a second consecutive quarter as it prepares for a stock market listing expected before year-end.
Michael Burry, the investor known for foreseeing the 2008 housing market collapse, has said he expects an AI-driven bubble in stocks to burst 'sooner rather than later.' He anticipates a market downturn tied to AI-related equities as early as next year.
Rising asset and stock values combined with inflation have pushed the wealth threshold for America's top 10% higher, according to new data cited in the report. The analysis suggests that while more Americans are becoming millionaires, gains at the very top of the wealth ladder are outpacing those in the middle.