A sell-off of technology stocks, which undermined some United States stock indexes, has set the Australian share market up for a weaker opening on Thursday.
The ASX 200 index is likely to start 0.2% under above the previous close, according to Australian Securities Exchange (ASX) futures trading, which quoted the March share price index contract 18 points below the previous settlement at 8,876 points.
U.S. stocks ended mixed on Wednesday (Thursday AEDT), dragged down by share price drops from Advanced Micro Devices, Palantir and other technology companies as investors worried about the valuation of stocks related to the artificial intelligence (AI) boom.
Although the Dow Jones Industrial Average rose 0.5%, the S&P 500 dropped 0.5%, and the tech-laden Nasdaq Composite slid 1.5%.
Argent Capital portfolio manager Jed Ellerbroek said the market was sceptical and worried about the pricing of AI-related companies.
"If you've got legacy software that's old and clunky, you're a ripe target for AI. We're a bit bearish on software in general, with the whole impetus of AI," GuideStone Funds Portfolio Manager, Public Investments Josh Chastant was quoted in a Reuters story as saying.
The Australian market had finished higher on Wednesday after rebounding from lows, with the ASX 200 Index gaining 0.80% to 8,927.8 points.
In fixed interest markets, Australian Government bond yields rose with two-year rates adding 0.07% to 4.275% and 10 year rates gaining 0.14% to 4.845%.
