Wall Street Sell-Off Continues as Investors Question Returns on Massive AI Spending
Nasdaq 100 futures fell 2.7% as investors questioned whether heavy AI spending by Alphabet, Amazon and Intel will boost profits.
- On Friday, Wall Street futures fell as Big Tech earnings reignited concerns that massive AI spending may not deliver returns; Nasdaq 100 futures dropped 2.5%.
- Investors are scrutinizing the enormous cost of the AI boom, demanding evidence that investments will eventually translate into profit following a bruising month for technology stocks.
- Alphabet shares sank more than 12% Thursday, wiping half a trillion dollars off its market value, while Intel plunged 25% Friday morning after issuing weaker fourth-quarter guidance.
- Amazon shares also tumbled 7% following an earnings report that indicated another increase in AI spending, as continued weakness among technology stocks suggests further pressure ahead.
- "The AI trade is down, but not out," said Paul Stanley, managing director at Arca, noting that pullbacks are normal in early AI development stages.
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13 Articles
Stock Market Today: Nasdaq Futures Plunge 2% as Big Tech Sells Off
Big Tech is pulling Wall Street toward a lower open on Friday, while a lot of earnings reports from energy, healthcare and utility companies keeps blue chips steady. Before the open, a fund tracking the S&P 500 was down 1% in premarket trading. The Nasdaq-100 proxy was off more than 2%. Those S&P 500 losses […]
Tech Sell-Off May Lead To Extended Pullback On Wall Street
Stocks are likely to come under pressure in early trading on Friday, extending the pullback seen in the previous session. The major index futures are currently pointing to a sharply lower open for the markets, with the S&P 500 futures down by 1.2 percent.
Channel 3000
Wall Street sell-off continues as investors question returns on massive AI spending
(CNN) — Wall Street braced for another steep day of losses Friday, with futures falling after the latest earnings from Big Tech reignited concerns that the massive spending on AI may not deliver the returns that investors expect.
Tech giants’ spending spooks investors as bonds rally
Futures trading pointed to falls on Wall Street later in the session, including a more than 2% drop in the tech-heavy Nasdaq 100. (AFP pic)LONDON: Tech shares slumped on Friday and US bonds surged toward their biggest monthly gain in nearly three years, as investors scurried to safety due to worries that huge and rising AI spending may not deliver sufficient returns.Futures trading pointed to falls on Wall Street later in the session, including …
coin-turk.com
BITRSS📉 Amazon and Intel shares fell by 7.3% and 23% respectively, Nasdaq 100 futures dropped by 2%, and Bitcoin fell to $77,000 during Binance's investigation into a suspected attack. 🛢️ Brent oil rose to $116.45 on concerns that the US may resume attacks on Iran, while gold fell below $4,000 and silver dropped by 2%. 🏦 The Bank of Japan kept interest rates at 1.25% and announced that core inflation had reached a level consistent with its 2% targe…
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