S&P 500, Nasdaq end sharply lower as revived AI doubts ignite tech selloff
- Wall Street's main indexes closed lower on Friday, ending a turbulent week as technology shares steadied but broader market sentiment weakened amid mounting concerns.
- Concerns over financing costs for heavy AI investment spending weighed on markets, though the S&P 500 technology sector posted a 0.35% gain while most other sectors, including financials and consumer staples, dropped more than 1%.
- Telecommunications stocks fell after reports that Elon Musk-led SpaceX seeks thousands of cell sites for a new carrier. Shares of AT&T and T-Mobile sank nearly 8%, while tower operators Crown Castle and American Tower gained 9% and 4%.
- Next week, one-third of S&P 500 companies including Alphabet, Microsoft, and Amazon report earnings, while the Federal Reserve is expected to keep interest rates steady on Wednesday.
- Kristina Hooper, chief market strategist at Man Group, warned of "fallout from the questioning of the AI trade," noting potential for reduced AI data center investment next year compared to projections.
312 Articles
312 Articles
AI spending concerns weigh on technology shares as oil jumps
Wall Street's latest technology selloff exposed a distinction that matters for the artificial-intelligence boom: confidence in a product's future does not guarantee confidence in the price of building it. Investors marked down technology shares on Thursday while oil rose and US government debt attracted demand. The combination puts financing discipline at the centre of the debate. An ambitious investment programme can offer substantial opportuni…
Global crude oil prices surged more than 3% to $116.72 per barrel, the highest since late April, amid conflicts in the Middle East, while global stock markets experienced volatility.
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