AI Doubts Wipe Nearly $1 Trillion From Nasdaq

Why are these missiles important for Ukraine?

Ukraine needs them for defence against rising Russian air attacks. The Patriot system is the only effective weapon for shooting down Russia's ballistic missiles.

Ukraine has been asking for stronger air defence for some time.

Yes. President Volodymyr Zelensky, Ukraine's president, said the country was running critically low on important missile supplies. He said Ukraine had waited almost a month for US approval.

What kind of missiles are included in this sale?

They are advanced PAC-3 interceptor missiles. An interceptor is a missile designed to destroy another missile in the air.

How much is the sale worth?

The missiles will cost 2.1 billion US dollars, or about 1.6 billion British pounds.

Will US taxpayers pay for the missiles?

No. The US State Department said no US money is involved. Ukraine will pay with donations from Canada, Germany and Norway, through the JUMPSTART programme.

Is there other support for the purchase?

Yes. The funding also includes national money financed by the European Union's Ukraine Support Loan. The State Department said Ukraine's allies in Europe and Canada would fund the sale entirely.

Who will make the missiles?

The main contractor will be Lockheed Martin, an American defence company.

Approval sounds important, but does it mean Ukraine will receive them soon?

Not necessarily. Zelensky warned that deliveries could take several years. On Friday, he again asked the US to release Patriot systems faster.

So Ukraine still needs help quickly, even after this decision.

That is the key point. The sale has been approved, but Ukraine is waiting for the missiles while Russian air attacks continue.

Thank you, Grace.

Technology shares have led a sharp fall in US markets.

Let's go to Liam, LinguaWire's correspondent for business.

Hello, Daniel. A sell-off in technology shares pushed US markets lower on Friday.

How serious was the fall?

The Nasdaq composite, an index with many technology companies, fell by more than 3% on Friday. In one week, nearly 1 trillion dollars in value has been lost from the technology-heavy Nasdaq exchange.

That is a huge amount in only one week.

Yes. Over one month, about 2 trillion dollars in value has been erased from the Nasdaq. The Nasdaq 100 index has fallen more than 5.8% during October.

What happened to the wider market?

The S&P 500 fell by more than 1% on Friday. It is an index of 500 of the most valuable companies in the United States. The Dow Jones Industrial Average also fell, but by less.

Why are investors selling technology shares?

They are worried about very large spending on artificial intelligence, or AI. Investors are asking if this spending will bring enough profit quickly enough.

Which companies have increased their AI spending plans?

Meta Platforms, Alphabet and Amazon have raised their spending forecasts. They are competing to expand AI infrastructure, including data centres.

How did Amazon's results affect its shares?

Amazon shares fell 1.8%. The company reported a weaker summer profit than analysts expected. It also said it had spent more this year than it had expected.

And Alphabet had an even larger fall.

Alphabet shares dropped by more than 12% a day earlier. About 500 billion dollars was wiped from its market value after it said it used more cash in summer than in spring, because of major AI investments.

What about Intel?

Intel shares fell nearly 30%. The chipmaker reported stronger quarterly profit than analysts expected. However, its profit forecast for the final three months of the year was far below expectations.

What will investors be watching now?

They will watch whether AI spending produces enough profit and better productivity. High interest rates may also slow the building of new data centres.

Thank you, Liam.

Part one: vocabulary.

Interceptor.

An interceptor is a missile that stops another missile. In the story, “An interceptor is a missile designed to destroy another missile in the air.”

Air defence used an interceptor to stop the missile.

Destroy.

To destroy means to damage something so badly that it no longer works. In the story, “An interceptor is a missile designed to destroy another missile in the air.”

The fire destroyed the old building.

Rising.

Rising means increasing. In the story, “Ukraine needs them for defence against rising Russian air attacks.”

Rising prices worry many families.

Part two: the grammar.

Comparatives with weaker than: “The company reported a weaker summer profit than analysts expected.”

Use “weaker than” to compare two things. It says that the first thing is less strong or less good than the second.

In the story, “The company reported a weaker summer profit than analysts expected.”

This phone has a weaker battery than my old phone.

Repeat after me: The company reported a weaker summer profit than analysts expected.