Shares slide as AI worries mount and British retail sales fall in September
Global markets weakened as investors questioned whether high returns from the artificial intelligence boom can last, while geopolitical tensions and concerns about France added to the pressure. The sell-off mattered beyond technology shares: investors moved towards US government bonds, and the developments come as British households and shops show signs of spending less.
In the US, the S&P 500 fell 1.2%, the Nasdaq dropped 2.6% and the Philadelphia semiconductor index lost 6.7%. Japanese and South Korean markets recovered from earlier falls to trade broadly flat; Brent crude rose 4% to $113.17 a barrel, while the US 10-year Treasury yield fell to 4.95%. Great Britain’s retail sales declined 0.4% in September, against a forecast 0.1% fall, with warm weather affecting demand for winter clothes and retailers reporting lower footfall and customer cutbacks.
In short
- AI concerns drove a sharp sell-off in US technology and chip shares.
- Brent crude reached $113.17 a barrel as geopolitical worries grew.
- Great Britain’s retail sales fell 0.4% in September.
Explained simply
AI companies have attracted large amounts of investment on hopes that their technology will bring strong profits. Shares in technology firms have risen as a result, but investors are weighing whether those gains can be sustained. The S&P 500 tracks large US companies, while the Nasdaq has a heavier concentration of technology firms.
Investors also watch government bonds, oil prices and events abroad when judging the outlook for markets and the economy. British retail sales measure how much shoppers spend in shops and online, offering a snapshot of household demand. A fall can matter to retailers and the wider economy, though one month’s figures do not show the whole picture.
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Originally published by The Guardian as “Global stocks wobble as AI fears grow; retail sales in Great Britain fall in September as shoppers cut back – business live”.