Tech stocks are facing a sharp sell-off as investors grow skeptical about whether massive investments in artificial intelligence will deliver quick returns, triggering steep market declines. The Nasdaq, heavily weighted toward technology, has lost nearly $1 trillion in value over the past week, while the broader S&P 500 erased October’s gains after a 1% drop. Weakness in tech shares pulled the Nasdaq down over 3%, with the Dow Jones Industrial Average also declining but to a lesser extent. The downturn follows disappointing earnings reports from major tech firms, raising concerns about the sustainability of AI-driven growth.
Big tech stocks falter as investors question whether billions being poured into AI can generate returns quickly enoughA sell-off of tech stocks that began earlier this month and gained steam with disappointing earnings from leading tech companies drove US markets down by hundreds of billions of dollars Friday. In total, the decline has knocked nearly $1tn in value off the tech-heavy Nasdaq exchange in one week and erased about $2tn in a month.The S&P 500, the index of the 500 most valuable companies in the US, fell by more than 1% Friday, losing hundreds of billions of dollars in market value. It was on track to erase its gain for October, even though it set its all-time high during the same month. The weakness for technology stocks dragged the Nasdaq composite down even further, more than 3%, also erasing hundreds of billions in value. The Down Jones Industrial Average fell less. Continue reading...
