Asian chip firms followed suit, with South Korea’s SK hynix and Samsung up 2.5 and 1.7 per cent respectively, while Japan’s Kioxia rallied 5 per cent.
Despite an eye-watering rally in tech stocks over the past year, investors are growing increasingly worried about when the vast sums of cash being pumped into the AI sector will see a meaningful return.
Coatsworth noted that the euphoria over Nvidia’s results “failed to spread across the rest of the market”.
In Europe, Paris shed 1 per cent, while London fell and Frankfurt edged higher.
That followed Tokyo and Hong Kong both closing slightly lower.
The mood was dampened by data showing that the Federal Reserve’s preferred gauge of US inflation remained stuck at a three-year high of 3.7 per cent in July.
“While July core PCE inflation came in line with consensus … the details of the release were more inflationary,” said Jim Reid, head of research at Deutsche Bank.
Investors will be keeping a close eye on Fed chief Kevin Warsh’s speech at the annual Jackson Hole symposium in Wyoming on Friday, hoping for clues about his plans for interest rates.
Nonetheless, “Nasdaq and S&P 500 futures … indicate a stronger start for Wall Street, despite wariness about monetary policy, as investors pile back into technology”, said Susannah Streeter, chief investment strategist at Wealth Club.
Oil prices were stable on Thursday following declines over several sessions as investors await developments on diplomatic efforts to reopen the Strait of Hormuz to tanker and cargo traffic.