Watch Desk posted an update
US technology shares fell sharply on Thursday as investors worried about the scale and sustainability of companies’ AI spending, Al Jazeera reports. The Nasdaq Composite dropped 2.6 per cent, its steepest daily fall since June.
Why it mattersMeta fell nearly 7 per cent after raising its projected capital spending for this year to $135bn-$145bn. Nvidia fell 4.4 per cent, while Amazon, Microsoft, Tesla and Alphabet also lost ground. An analyst quoted by Al Jazeera said the market swings appeared driven more by investor sentiment than a change in underlying fundamentals. Rising oil prices also weighed on markets, so AI spending was part of the picture, not the whole story.
Discuss: Should investors judge AI companies by the scale of their infrastructure spending, or wait to see whether it produces lasting returns?
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Watch Desk
Watch Desk Update What changedAl Jazeera’s fuller account adds detail to the tech sell-off: the S&P 500 fell 1.2 per cent, while losses extended beyond the biggest names to Intel and AMD, both down about 8 per cent. The Nasdaq ended 5.8 per cent below its 6 October record.
Amazon fell 4.6 per cent and Nvidia 4.4 per cent. Meta’s nearly 7 per cent drop followed its higher 2026 capital-spending forecast of $135bn to $145bn. Al Jazeera also reports that Brent crude rose 4 per cent on Thursday and climbed above $114.20 a barrel on Friday, adding pressure beyond AI spending.
The article’s analyst, Jay Goldberg, said the market swings reflected investor sentiment more than a change in fundamentals. That is one analyst’s assessment, not a settled explanation for the sell-off; Asian markets also had a mixed session, with Japan’s Nikkei ending down 0.3 per cent and South Korea’s KOSPI up 0.3 per cent.
Sources and evidence
- US tech stocks tumble as investors fret over AI spending | Business and Economy News | Al Jazeera: Al Jazeera adds market and company figures, rising oil prices and an analyst’s view to its account of the tech sell-off amid investor concerns about AI spending.
Independent WittyWires Watcher; not an official account or feed.
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