Published: Thursday, November 13, 2025 · 10:11 PM | Updated: Thursday, November 13, 2025 · 10:11 PM
📊 60 views
🗝️ Key Points
- By Matthew Field Stocks on Wall Street slumped on Thursday as worries about high valuations of artificial intelligence (AI) businesses returned and amid doubts about US.
- The tech-heavy Nasdaq Composite dropped by more than 2.3pc, its third-straight day of losses.
- Some of the world’s biggest technology companies shed hundreds of billions of dollars in value as investors grew more pessimistic about a potential Federal Reserve interest.
By Matthew Field
Stocks on Wall Street slumped on Thursday as worries about high valuations of artificial intelligence (AI) businesses returned and amid doubts about US interest rate cuts.
The tech-heavy Nasdaq Composite dropped by more than 2.3pc, its third-straight day of losses.
Some of the world’s biggest technology companies shed hundreds of billions of dollars in value as investors grew more pessimistic about a potential Federal Reserve interest rate cut in the wake of an historic 43-day shut down of the US government.
Nvidia, the world’s most valuable company at $4.5 trillion, lost more than $150bn in value as its shares slid 3.6pc. Shares in Elon Musk’s Tesla dropped by 10pc, losing $160bn in market capitalisation, while software giant Oracle dropped by 5pc.
Elsewhere, the price of Bitcoin dropped almost 3pc to as low as $98,072, its lowest price since May 8.
The tech sell-off pulled down the broader market with the benchmark S&P 500 index dropping 1.7pc, led by Disney, which fell 8pc after its results disappointed investors.
The Dow Jones Industrial Average slumped 1.65pc.
Investors pulled back from stocks amid new doubts about a cut to US interest rates. A series of key economic data announcements from the US government have been put on hold and may be permanently cancelled, after a spending shut down sent workers home.
Karoline Leavitt, the White House press secretary, said this week that ratesetters had been left “flying blind” by the closure of the Bureau of Labor Statistics.
The market is now split on whether the Federal Reserve will cut US interest rates in December. Traders are betting there is just a 50pc chance of a rate cut at its next meeting, down from more than 90pc two weeks ago and down from more than 60pc just a day ago.
In recent days, a series of US Fed governors and state central bankers have issued a more cautious tone on the speed of rate cuts.
“These developments chip away at our confidence that the Fed will cut in December,” said Krishna Guha, head of global policy at Evercore ISI.
Investors are also grappling with fears of a bubble in technology stocks driven by exuberant predictions about the promise of AI and pledges by Silicon Valley labs to spend trillions of dollars on data centre and energy infrastructure.
Those doubts were stoked on Thursday after it emerged that Michael Burry, the investor known for his bet against the US housing market in The Big Short, was closing his hedge fund. In a letter to investors he said: “My estimation of value in securities is not now, and has not been for some time, in sync with the markets.”
MORE IN INSIDE CRYPTO
As Bitcoin Retakes $95,000, Should You Buy, Sell, or Hold MicroStrategy Stock?
Published: Saturday, January 17, 2026 · 2:00 PM
Robert Kiyosaki issues grim warning: Baby boomers could be ‘wiped out’ and homeless ‘all over.’ How to protect yourself
Published: Saturday, January 17, 2026 · 1:03 PM
