Live Updates > Live Update Details
2026-11-06 06:40:26
[Analyst: US Tech Stock Plunge Essentially a Liquidation of AI Trading Positions, Election Results the "Last Straw"] 1. Swissquote Bank senior analyst Ipek Ozkardeskaya stated that, broadly speaking, Thursday's performance in US tech stocks was essentially a liquidation of AI trading positions. Ahead of this earnings season, market concerns about excessive AI spending overshadowed better-than-expected earnings from tech companies, and strong reports failed to boost investor interest. 2. She pointed out that massive spending, rising borrowing costs, and declining free cash flow for hyperscale cloud service providers had weakened market interest in tech stocks. These companies are issuing more stock and bonds to finance additional AI spending, and increased stock and bond issuance will put pressure on valuations. 3. Ozkardeskaya stated that this sentiment had already formed before this week and the midterm elections, and the election results were the final straw. The Trump administration's push for AI infrastructure development over the past two years may now be weakening; the current administration has overlooked many of AI's impacts on jobs, the economy, and the environment, and aggressive AI infrastructure development is expected to face stricter scrutiny.
