AI Stocks Drag World Markets Lower     07/17 04:50

   World shares were mostly lower on Friday, with Tokyo's Nikkei 225 losing 4% 
as heavy selling of computer chipmakers and other AI-related shares dragged 
markets lower.

   BANGKOK (AP) -- World shares were mostly lower on Friday, with Tokyo's 
Nikkei 225 losing 4% as heavy selling of computer chipmakers and other 
AI-related shares dragged markets lower.

   South Korean markets were closed, but shares in Taiwan fell 6.5% a day after 
its TSMC, the world's biggest contract manufacturer of computer chips, 
announced it plans to spend an extra $100 billion on building fabrication 
plants in the U.S.

   TSMC dropped 7.3% on Friday.

   In early European trading, Germany's DAX dropped 0.3% to 24,841.19 and the 
CAC 40 in Paris fell 0.4% to 8,346.09. Britain's FTSE 100 advanced 0.4% to 
10,615.71.

   The future for the S&P 500 declined 0.8% while that for the Dow Jones 
Industrial Average was 0.5% lower.

   Stocks related to artificial intelligence have been under pressure for weeks 
because of worries that their prices have shot too high and that voracious 
demand for computer memory and processors may not be sustainable if AI ends up 
not producing as much profit and productivity as promised.

   Oil prices surged as fighting in the Middle East intensified.

   The United States expanded its airstrike campaign against Iran early Friday 
by hitting more bridges and collapsing a tower at a key Iranian port, part of 
U.S. President Donald Trump's threats to start striking infrastructure to 
pressure Tehran to ease its chokehold on the Strait of Hormuz.

   In other Asian trading, the Nikkei lost 4% to 64,141.12, at times trading 
near its lowest level in over a month, as shares in computer chip equipment 
maker Tokyo Electron sank 8.2%. Chip testing equipment maker Advantest tumbled 
7.2%.

   SoftBank Group shed 9%.

   The Hang Seng in Hong Kong gave up 2% to 24,505.38, while the Shanghai 
Composite index lost 3.1% to 3,764.15, dipping to its lowest level in nearly 11 
months.

   In Australia, the S&P/ASX 200 declined 0.5% to 8,796.70.

   "Now investors are taking profits from the first-half winners and moving 
toward areas that were left behind," Stephen Innes, of SPI Asset Management, 
said in a commentary.

   On Thursday, the S&P 500 fell 0.5% even though nearly three out of every 
four stocks in the index rose after more of the country's biggest companies 
reported better earnings for the latest quarter than analysts expected.

   The Dow Jones Industrial Average dipped 0.2%, and the Nasdaq composite lost 
1.5%.

   Nvidia fell 2.4%, making it the heaviest weight on the index. Other stocks 
that have benefited from strong demand for AI also sank, giving back some of 
their stellar gains.

   Micron Technology fell 5.6% to shave its gain for the year so far below 
199%. SanDisk fell 12.6% but is nevertheless up 494% for the year. Western 
Digital sank 9.2% but is still up 171% for the year.

   Oil prices are near their highest level in a month because of worries that 
the war with Iran will keep oil tankers out of the Strait of Hormuz and block 
shipments of crude from the Persian Gulf to customers worldwide.

   The price for a barrel of Brent crude, the international standard, rose 1.1% 
to $85.13 per barrel. U.S. benchmark crude oil was up 1.3% at $79.95 per barrel.

   Reports on the U.S. economy Thursday came in mixed. One said shoppers spent 
less at U.S. retailers last month than economists expected.

   A separate report said fewer U.S. workers applied for unemployment benefits 
last week, an indication of a solid job market, while a third report said 
manufacturing in the mid-Atlantic region is better than economists expected.

   In other dealings early Friday, the U.S. dollar was nearly unchanged at 
162.38 Japanese yen. The euro fell to $1.1440 from $1.1443.