S&P 500, Nasdaq end sharply lower as revived AI doubts ignite tech selloff
Investors are worried that ongoing Middle East tensions could keep inflation high and force the US Federal Reserve to continue raising interest rates.
The tech-heavy Nasdaq suffered its steepest single-day drop since early June as AI-related earnings news triggered widespread selling in the sector. The S&P 500 also ended the day in negative territory, while the blue-chip Dow Jones posted a modest gain. Meta Platforms saw its stock plunge 7.0%, following the company's first cash outflow in over a decade due to AI spending.
Tesla shares fell 3.1%, despite positive free cash flow and a reduced capital spending plan. The Philadelphia Semiconductor Index plunged 6.7%, marking the largest daily percentage drop since June. Analysts suggest market participants are beginning to question the AI narrative, impacting the tech-heavy indices. Geopolitical tensions in the Middle East have also fueled concerns about inflation and may prolong the Federal Reserve's rate-hiking campaign.
Earnings season has progressed, with most companies exceeding analyst expectations, but a few, like Procter & Gamble, have warned of rising costs eroding profit margins.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- S&P 500, Nasdaq end sharply lower as revived AI doubts ignite tech sell-off businesstimes.com.sg
- S&P 500, Nasdaq end sharply lower as revived AI doubts ignite tech selloff freemalaysiatoday.com
- S&P 500, Nasdaq end sharply lower as revived AI doubts ignite tech selloff channelnewsasia.com
- S&P 500, Nasdaq end sharply lower as revived AI doubts ignite tech selloff straitstimes.com
