Key facts
- Global equity markets were flat on Thursday.
- Concerns about AI spending and higher interest rates fueled a sell-off in technology and chip stocks.
- Investors are questioning the sustainability of demand for data centers.
- The Nasdaq and Philadelphia SE Semiconductor index were down.
- The S&P 500 reversed early losses, led by healthcare and materials stocks.
- The FTSE 100 outperformed global peers, ending up 1.1 per cent.
Global equity markets were flat on Thursday as concerns about artificial intelligence (AI) spending and higher interest rates fueled a sell-off in technology and chip stocks. Investors are unnerved by the valuations of companies in the AI ecosystem, with more voices questioning the sustainability of demand for data centers. On Wall Street, the tech-heavy Nasdaq was down and the Philadelphia SE Semiconductor index fell 2 per cent. The benchmark S&P 500 reversed early losses and traded higher, led by healthcare and materials stocks, while the Dow was up 1 per cent. In Europe, the CAC 40 in Paris ended up 0.8 per cent, and the DAX 40 in Frankfurt added 0.3 per cent. The FTSE 100 in London outperformed global peers, ending up 1.1 per cent, benefiting from domestic economic data and lower bond yields. In Asia, the KOSPI index plunged almost 8 per cent, and the Nikkei 225 fell nearly 5 per cent. Kenmare Resources shares rose 3.7 per cent, and Ryanair shares bounced 1.5 per cent. Bank of Ireland and AIB shares were down amid speculation of further central bank rate hikes.