Global stocks tumbled on Thursday morning as chipmakers and other big tech companies reported disappointing earnings results that largely fell short of market expectations. The benchmark S&P 500 remained little changed after its 2.3% slump during the previous session. Nasdaq 100 futures edged 0.1% higher while those on the Dow Jones Industrial Average remained broadly static.
In Europe, the benchmark Stoxx 600 Index slumped by 1.1%, while the MSCI Asia Pacific Index tumbled by 1.7%. The MSCI Emerging Markets Index declined 0.8%.
Leading the big tech earnings reports were Tesla and Alphabet Inc., both of whom posted disappointing quarterly earnings. Kering SA, Nestle SA, and Stellantis NV followed, each failing to meet Wall Street estimates with their earnings.
Investors have broadly engaged in a sell-off of artificial intelligence-focused stocks; a major reversal from the AI frenzy that previously took charge this year. “There seems to be a broad reassessment on the cost and benefit calculus for the artificial intelligence ecosystem,” Lombard Odier Singapore Ltd macro strategist Homin Lee explained.
For the remainder of the week, investor focus will shift toward macroeconomic data. US GDP and initial jobless claims data are due later on Thursday, providing further insight into the economy’s health.