AI innovation sparks concerns, New York Stock Exchange plunges 521 points, 'lights up in red'

On the 27th, the New York Stock Exchange closed lower due to concerns over artificial intelligence (AI) innovation, credit risks, and inflation worries, which are intertwined. This was caused by recent economic variables impacting the financial markets.

That day, the Dow Jones Industrial Average fell 521.28 points to close at 48,977.92. The S&P 500 and the tech-heavy Nasdaq Composite also closed lower. Investors are worried about potential job losses and the decline of traditional industries resulting from recent AI advancements.

The payment company ‘Block,’ founded by Jack Dorsey, announced it would lay off about half of its employees, further fueling these concerns. Meanwhile, a report from Citeline Research highlighted the possibility of large-scale unemployment and economic crises caused by AI innovation, intensifying market anxiety.

Additionally, news of some UK financial institutions falling into distress has increased credit risk concerns. Major investment firms reportedly have exposure to these institutions, leading to sharp declines in related stock prices.

On the other hand, AI semiconductor giants like NVIDIA have also been affected by investor sentiment. However, some other companies saw their stock prices rise due to better-than-expected earnings reports.

The recent decline in the New York Stock Exchange appears to be the result of multiple economic factors acting together. While this economic uncertainty may persist, there is also a possibility that this trend could ease, leading to a market rebound and renewed stability.