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Global Markets React as AI Stocks Experience Significant Decline

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Global Markets React as AI Stocks Experience Significant Decline

Financial markets in both the US and Asia have experienced substantial declines as investors rapidly sell off shares in technology companies, particularly those associated with artificial intelligence (AI). This week has seen notable downturns, marking the largest single-day losses in the markets since 2022.

In New York’s Wednesday trading, the S&P 500 fell by 2.3%, and the tech-heavy Nasdaq experienced a significant drop of 3.6%. The Dow Jones Industrial Average also declined by 1.2%. Major technology firms, including Nvidia, Alphabet, Microsoft, Apple, and Tesla, were among those leading the downturn.

On Thursday, Japan’s Nikkei index mirrored these declines in Asia, falling by 3%. This sell-off comes after a period where technology and AI-related stocks had significantly driven market gains.

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AI chip giant Nvidia saw its shares decrease by 6.8%, contributing to a total loss of about 15% over the past two weeks. Investors are eagerly awaiting Nvidia’s financial results, which are set to be reported at the end of August.

Elon Musk’s electric car company Tesla also faced a steep decline, with shares dropping more than 12% following financial results that did not meet investor expectations. Alphabet, the parent company of Google and YouTube, saw a 5% decrease in its stock price. Although Alphabet’s recent financial results exceeded analyst expectations, the company announced continued high spending for the remainder of 2024, primarily focused on AI development.

In Asia, notable declines were seen among chip makers, including Renesas Electronics and Tokyo Electron in Japan, and South Korea’s SK Hynix. These companies have been heavily invested in AI technology.

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“Investors are now becoming more concerned about all this expenditure with AI without the revenue benefit,” commented Jun Bei Liu, Portfolio Manager at Tribeca Investment Partners.

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Tragedy Strikes Hindu Festival in India: Nearly 40 Children Drown During Ritual Bathing

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Tragedy Strikes Hindu Festival in India: Nearly 40 Children Drown During Ritual Bathing

In a devastating incident in eastern India, at least 46 people, including 37 children and seven women, have drowned while celebrating the Hindu Jivitputrika festival. The fatalities, which occurred across 15 districts within the past 24 hours, resulted from victims ritually bathing in rivers and ponds swollen by recent flooding.

The three-day festival, which honors children’s wellbeing, is traditionally marked by mothers fasting and families participating in ritual baths. This year, the swollen water bodies, exacerbated by recent floods, have turned the celebratory ritual into a deadly disaster.

Local disaster management officials have expressed fears that the death toll could rise further. State authorities have promised compensation for the families and relatives of the victims.

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Fatal accidents during religious festivals are not uncommon in India, where large gatherings often take place with insufficient safety measures. This tragic incident serves as a stark reminder of the dangers posed by such gatherings, especially during adverse weather conditions.

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Israeli Airstrikes Hit Beirut, Hezbollah Leader Targeted Amid Escalating Conflict

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Israeli Airstrikes Hit Beirut, Hezbollah Leader Targeted Amid Escalating Conflict

The Israel Defense Forces (IDF) have conducted airstrikes in Beirut, reportedly killing Mohammad Hussein Surur, a senior Hezbollah air unit leader. The Lebanese health ministry confirmed two deaths and 15 injuries from the attack. The strikes come amid escalating violence between Israel and Hezbollah, with both sides exchanging fire throughout the night and into the morning.

Israeli Prime Minister Benjamin Netanyahu stated that the IDF would continue to fight “with full force” against Hezbollah, aiming to dismantle the Iran-backed militant group. This marks a significant intensification of hostilities between the two sides, which have been exchanging rockets and airstrikes for days. The Lebanese health ministry also reported that 28 people were killed today by Israeli airstrikes.

In retaliation, Hezbollah launched 80 missiles targeting northern Israeli cities, including Safed. Israeli authorities have reported no casualties but noted significant property damage in Safed and Rosh Pina.

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Amid the intensifying conflict, U.S. Defense Secretary Lloyd Austin renewed calls for a diplomatic solution. The U.S., along with 11 other allied nations, has urged both Israel and Hezbollah to agree to a ceasefire to prevent further escalation and civilian casualties.

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Strong Winds Cause Further Ferry Cancellations Between Isle of Man and Lancashire

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Strong Winds Cause Further Ferry Cancellations Between Isle of Man and Lancashire

Ferry travel between the Isle of Man and Lancashire continues to face disruption due to strong winds over the Irish Sea. The Isle of Man Steam Packet Company has cancelled Thursday’s 08:45 BST sailing of the Manxman to Heysham and its scheduled 14:15 return journey. This follows the cancellation of the vessel’s return trip from the Lancashire port on Wednesday evening.

The disruptions have affected postal services, with the Isle of Man Post Office reporting delays in deliveries from the UK. While local deliveries within the island remain unaffected, items posted on Wednesday for UK delivery may not reach Royal Mail’s network in time for Friday delivery.

Additionally, the ferry cancellations have caused a delay in newspaper deliveries, with no papers available on the island on Thursday, as confirmed by the island’s wholesale distributor.

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