Wall Street tumbles: correction not over, says Raiffeisen expert

Wall Street and Asian markets suffered one of their sharpest drops in years on Thursday, erasing nearly $3 trillion in market value, with AI-related stocks hit hardest as Nvidia alone lost about $500 billion. Raiffeisen Switzerland's chief investment officer Matthias Geissbühler called it a correction, not a crash, triggered by US midterm election results. Democratic gains raised expectations of stricter tech and AI regulation, while crowded investor positions in semiconductor and AI stocks were unwound, accelerating losses. Geissbühler said a short-term rebound is likely but the correction is probably not over. Swiss stocks are less affected due to their defensive focus, and pension funds remain comfortable with roughly 5% average returns this year.