AI stocks climb after trillions wiped from market values — SkimNews
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- Nasdaq Composite closed up 1.1% on Friday, partly reversing its 5.5% fall, while the S&P 500 gained 0.3% and the Dow slipped 0.4%.
- SK Hynix plunged more than 10% as South Korea's Kospi fell 6%; major indexes in Germany, France and Spain also ended lower, while the FTSE 100 declined 1.01%.
- Nvidia, SpaceX and Tesla were among companies that recovered some ground after the rout, in which some companies lost hundreds of billions of dollars in market value.
- Democrats won control of both houses of Congress and key state contests in the AI data-centre race after campaigning for new AI and data-centre rules, feeding investor concern that development would slow.
- Bureau of Labor Statistics said unemployment had remained between 4.1% and 4.3% since March; the latest employment report showed 165,000 jobs added, more than double analyst expectations, and unemployment easing to 4.1% from 4.2%.
- Trump reiterated support for what he calls "super intelligence," saying only "foolish leadership" would say no to "the riches they bring."
- Pierre Baqué called the share movements a "necessary market correction" and said the industry must show financial discipline; Russ Shaw said incoming Congress will focus dramatically on AI and that companies are communicating its benefits poorly.
Why it matters: For global AI investors, the 1.1% Nasdaq rebound contrasted with a 6% Kospi fall and a more-than-10% drop in SK Hynix. Democrats now control both chambers after campaigning on AI and data-centre rules, leaving chipmakers and AI firms facing new congressional scrutiny and pressure to demonstrate financial discipline.
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