Slump

The markets are souring on artificial intelligence, but is this the bubble being burst? Meanwhile, California proposes a tax on billionairesHello, and welcome to TechScape. I’m Blake Montgomery, US tech editor at the Guardian, writing to you after fending off sunburns at the beach. Today, we’re discussing a rocky week for the AI industry’s finances and how California’s proposed billionaire’s tax is changing the political posture of the state’s governor.Impact of social media ban for under-16s in UK hinges on how firm it isUK under-16s social media ban: which apps will be blocked and how will it work?‘Tech firms are losing the public’: social media age bans near tipping pointOpenAI staggers AI model release after Trump administration requestMeta pauses employee tracker for AI training amid privacy concerns‘It’s dangerous and it’s going to erode trust’: redesign of US government websites stokes surveillance fearsCalifornia billionaire tax will appear on ballot after deadline for deal passes | Technology | The Guardian Continue reading...

• The Nasdaq Composite index fell more than 4.5% over the past week, driven by a significant sell-off in high-growth technology stocks. • The market downturn coincided with the release of critical inflation and economic growth data on Thursday, which influenced investor expectations. • These shifts are significant as they impact the outlook for future monetary policy and interest rate decisions by central banks.

• Asian stock markets experienced a significant slide, driven primarily by a slump in technology shares. • South Korea's Kospi index faced extreme volatility, requiring trading to be halted three times in one week to curb panic selling. • Major regional indexes in Taiwan and mainland China also saw sharp declines, reflecting a broader downturn across the region's financial markets.

• Asian stock markets experienced a significant slide, driven primarily by a slump in technology shares across the region. • South Korea's Kospi index faced extreme volatility, resulting in trading being halted for the third time this week to curb panic selling. • Other major regional indexes, including those in Taiwan and mainland China, also recorded sharp declines.

• South Korea's Kospi and other major Asian indices slumped, with Taiwan's Taiex closing 3.6% lower and Hong Kong's Hang Seng Index losing over 2%. • The downturn was driven by a SoftBank rout and investor concerns regarding memory chip demand following price hikes by Apple. • Specific losses included chip giant TSMC, which closed over 2% lower, and Alibaba, which tanked 6% after accusations from Anthropic regarding the exploitation of AI models.

• Major stock indexes ended mixed on Thursday as Micron Technology's strong quarterly earnings sparked a rally in memory chips, offsetting losses in other mega-cap tech stocks like Apple. • The Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 4.1% year-over-year in May. • This surge from April's 3.8% increase marks a three-year high, complicating the Federal Reserve's efforts to maintain price stability and manage interest rates.

• South Korea's Kospi index plummeted nearly 10% on Tuesday, driven by a massive selloff in the technology sector. • The slump was triggered by regulatory concerns regarding the rapid approval of leveraged products tied to semiconductor shares, which launched only one month ago. • Investor sentiment was further dampened by an ongoing MSCI review and broader market volatility.