Global stock markets flash red amid concerns about Big Tech bubble & US economy suffering from high interest rates
GLOBAL stock markets flashed red yesterday — amid concerns about a Big Tech bubble and the US economy suffering from high interest rates.
The sell-off began overnight in Japan, as Tokyo’s stock market had its biggest drop in eight years.
It then moved with the timezones and dragged all of Europe’s index lower and hit the FTSE.
The sell-off worsened after hedge fund Elliott told its investors that chip-maker Nvidia — which had been the most valuable company in the world for a time earlier this year — was “overhyped”.
It was enough to wipe $100billion off its valuation.
Investors are taking a dim view of the current rash of results from tech giants, and are asking at what point their big spending on AI projects will deliver profits.
Amazon said on Thursday that its earnings would be below forecasts, and while Apple beat its profit forecasts, its iPhone sales slipped to the lowest level in three years.
Chip-maker Intel is to cut 15,000 jobs to save on costs.
Savers rising
VIRGIN MONEY has lent less to mortgage and credit card customers in recent months as people save up.
The bank said more customers had opened ISA accounts to take advantage of high interest rates.
It will spend at least £10million on adviser fees relating to its upcoming takeover by Nationwide.
IAG payout joy
BRITISH AIRWAYS’ owner IAG has restored its dividend for the first time since the pandemic.
Shares were up by over 4 per cent yesterday after its second- quarter profits beat forecasts.
Boss Luis Gallego said the restoration of a dividend “reflects our confidence in the business”.
GOOD WEEK: DANIEL Frumkin, boss of Metro Bank, which said it would return to profit later this year after last autumn’s fight for survival.
BAD WEEK: JOZSEF Varadi, chief of Wizz Air, after its shares plunged on the back of its profits being almost wiped out.