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Wall Street tumbles to its worst day since June after the sell-off for tech stocks deepens
Nvidia and Intel led the decline as investors questioned whether AI spending will deliver enough profit, while Amazon’s cash burn added to the pressure.
- On Friday, technology stocks plunged as earnings and profit forecasts fell short, with Intel tumbling 30.1% after cutting guidance and dragging the Nasdaq and S&P 500 toward their worst day since June.
- Investor anxiety stems from massive capital expenditures hyperscalers are pouring into artificial intelligence, as traders shift from the "hopes and dreams" phase to the "show me" phase demanding proof of returns.
- Amazon reported burning through $42.4 billion in cash over the prior 12 months, while Alphabet shares dropped more than 12% on Thursday, its worst day on record, citing mammoth AI investments.
- Investors rotated into non-tech sectors, with Coca-Cola, Walmart, ExxonMobil, and Chevron all rising over 1% after reporting stronger profits, while the 10-year Treasury yield fell to 4.94% as investors sought safety.
- Markets face the upcoming midterm elections as the next major test for stability; strategists note that once elections pass, uncertainty will likely decrease regardless of outcome, providing a potential catalyst for recovery.
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50 Articles
AI spending fears hammer Google shares, triggering massive one-day loss
Shares of Google's parent company, Alphabet, plunged nearly 13% Thursday after its earnings showed slowing revenue growth, raising concerns about the massive spending needed to build out its AI infrastructure.
·New York, United States
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Tech sell-off deepens, sending Wall Street toward its worst day since June
The tech-heavy Nasdaq shed about 3 per cent by mid afternoon. In Canada, the S&P/TSX composite index was down about 2.3 per cent. Worries are rising about whether the hundreds of billions of dollars invested in AI will produce enough profit and productivity to make the investment worth it.
·Ottawa, Canada
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Coverage Details
Total News Sources50
Leaning Left12Leaning Right7Center23Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 28%
C 55%
R 17%
Factuality
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