AI-Fueled Stock Rally Dealt $1 Trillion Blow by Chinese Upstart
- Nasdaq 100 drops 3% for worst day in six weeks; Dow climbs
- ‘AI dominance cannot be taken for granted,’ Saxo’s Chanana
For the better part of two years, artificial intelligence technologies have been a nonstop gift for US equities investors. The Nasdaq 100 Index rose 92% from the start of 2023, adding more than $14 trillion in value and minting billions for a handful of tech executives and founders.
Just last week, the S&P 500 Index powered to another record thanks in large part to more AI hype, this time from the Oval Office in the form of $500 billion in planned investments. President Donald Trump declared the US the global AI leader — a statement few would’ve contested long before he even uttered it. Nvidia Corp. had the best chips. Meta Platforms Inc., OpenAI and other US tech giants had significant leads in developing the bots that would drive it.