S&P 500, Nasdaq end sharply lower as revived AI doubts ignite tech selloff
- On Thursday, the Nasdaq Composite index tumbled 2.6%, its worst day since early July, as major technology and AI-linked stocks slumped, wiping out hundreds of billions in market value.
- Mounting scrutiny regarding the financing of massive AI infrastructure projects triggered the selloff, as market participants questioned whether future tech earnings can sustain aggressive capital expenditures.
- Meta Platforms shares slumped nearly 8% after the company announced plans to issue new stock to fund AI spending, while the Philadelphia semiconductor gauge fell sharply amid broad selling pressure.
- As equities tumbled, investors rotated capital into safe-haven assets; the 10-year Treasury yield slid more than 19 basis points, the biggest drop since March 2023, before steadying below 5%.
- Next week, Alphabet, Amazon, and Microsoft will report earnings that could determine whether the AI-driven trade stabilizes or faces deeper correction amid investor skepticism over capital spending sustainability.
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naturalnews.comAI meltdown: $2 Trillion wiped from tech stocks as investors question AI spending
October 2026 saw $2 trillion erased from Nasdaq-100 values as Big Tech earnings disappointed investors. Alphabet suffered worst single-day drop in history after search advertising slowdown and massive AI cash burn. Amazon reported negative free cash flow of $42.4 billion over 12 months driven by AI infrastructure spending. Microsoft bucked trend with strong results, indicating […]
Wall Street closed with varied results, highlighting the retrogression of the technology sector due to doubts about investments in artificial intelligence.The Dow Jones rose driven by oil collapse and capital rotation, while Nasdaq and S&P 500 fell.
While concerns are mounting about the profitability of massive investments by companies in the artificial intelligence sector, the disappointing quarterly results of these giants have led to a sharp decline in equity markets.
New flame of oil, the Brent reaches 113 dollars per barrel and the Wti 103.60. The Nasdaq yields 2.26%, Milan closes to -1%
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