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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.
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.
“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.
News
Trump Says Iran Will ‘Never Have Nuclear Weapon’ Under New Deal as He Criticises Israel Over Lebanon
United States President Donald Trump has declared that Iran will never be allowed to obtain a nuclear weapon under a newly agreed deal between Washington and Tehran, while also voicing criticism of Israel’s actions in Lebanon.
Although the agreement was reached on Sunday, the full details have not yet been made public.
Speaking on Monday, Trump said the agreement had been fully completed and signed, adding that the full text would be released “pretty soon”. He suggested the document could be made public after both parties formally sign it in Switzerland on Friday.
According to senior US officials, one of the key provisions of the agreement is the reopening of the Strait of Hormuz, a vital corridor for global oil and liquefied natural gas shipments. The route is expected to reopen on Friday as part of the implementation process.
US Vice-President JD Vance indicated that Trump may choose to release details of the agreement before the formal signing ceremony.
Meanwhile, Seyed Abbas Araghchi confirmed that a new round of negotiations aimed at securing a comprehensive peace settlement will begin in Switzerland on the same day.
American officials have also disclosed that technical discussions concerning Iran’s nuclear programme are expected to start this week as part of the broader negotiation framework.
The nuclear issue remains one of the most sensitive aspects of relations between the United States and Iran. Western governments have long accused Tehran of seeking the capability to develop nuclear weapons, allegations that Iran has consistently denied, insisting its nuclear activities are intended for peaceful civilian purposes.
Trump’s latest comments underline Washington’s position that any future agreement must prevent Iran from obtaining nuclear weapons while providing a framework for reducing tensions across the region.
The deal comes after months of conflict and diplomatic efforts involving the United States, Iran, Israel and regional mediators. Attention is now focused on the upcoming talks in Switzerland and the anticipated publication of the agreement’s full contents, which are expected to provide greater clarity on the commitments made by both sides and the mechanisms for enforcing them.
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Twelve Killed After Skydiving Plane Crashes Shortly After Take-Off in Missouri
Eleven skydivers and a pilot have died after a small aircraft crashed shortly after take-off in the US state of Missouri, authorities have confirmed.
The aircraft, which had been leased by a skydiving company, departed from Butler Memorial Airport at approximately 11:20 a.m. local time on Sunday.
According to officials from Bates County Emergency Management, the plane failed to gain sufficient altitude after take-off. It then made a sharp left turn before crashing roughly 200 yards from the airport.
All 12 people on board were killed in the accident.
The Federal Aviation Administration identified the aircraft as a Pacific Aerospace P750 and confirmed that it crashed while departing the airport.
The agency also noted that air traffic control services were not being provided at the time of the incident.
Local media reports indicated that emergency responders were examining the crash site to determine whether any skydivers may have exited the aircraft before it went down. However, authorities have not confirmed that any occupants managed to jump from the plane.
The city of Butler is located about 50 miles south of the Kansas City metropolitan area.
An investigation into the cause of the crash has been launched, with the National Transportation Safety Board taking the lead role in determining what caused the aircraft to lose altitude and crash shortly after departure.
Officials have not yet released the identities of the victims, and investigators are expected to spend the coming days examining the wreckage, flight records and maintenance history of the aircraft as part of the inquiry.
News
Trump Urges Restraint After Beirut Strike Threatens Prospective US-Iran Agreement
United States President Donald Trump has expressed confidence that a long-awaited agreement with Iran can still be finalized within hours, despite concerns that recent Israeli strikes on Beirut could derail the process.
Speaking in a brief interview with Fox News, Trump said he believed a deal between Washington and Tehran would be signed within the next two to three hours.
The comments came amid heightened tensions after Iran warned that Israeli military action in Beirut risked undermining efforts to secure a broader agreement aimed at reducing regional hostilities.
According to Fox News correspondent Trey Yingst, Trump revealed that he had spoken directly with Israeli Prime Minister Benjamin Netanyahu following the strikes. During the conversation, the US president reportedly voiced frustration over the military action and urged Israel to avoid further attacks that could jeopardize the negotiations.
Yingst reported that Trump specifically asked Netanyahu not to carry out additional strikes against Hezbollah, warning that further escalation could threaten the progress made toward securing the agreement.
The diplomatic push comes at a critical stage in negotiations involving the United States and Iran, with mediators and officials from several countries working to finalize terms intended to ease tensions and prevent further conflict in the region.
The latest developments follow warnings from Tehran that continued military operations in Lebanon could complicate efforts to reach a deal and potentially delay or derail the expected signing.
Despite the uncertainty, Trump’s remarks suggest the White House remains optimistic that the agreement can still be completed, provided regional actors exercise restraint and avoid actions that could inflame the already fragile situation.
Diplomatic efforts are expected to continue as negotiators work against the clock to secure the deal and prevent renewed instability across the Middle East.
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