Wall Street sinks as Nasdaq falls over 2% on AI cost worries
The tech-heavy Nasdaq slid more than 2 percent on Thursday as growth stocks weakened after earnings from mega-caps Tesla and Meta did little to address AI-related concerns, with a recovery in oil prices further adding to market unease. Meta slipped 5.2 percent after the social media giant unveiled a new class of non-voting shares to help fund its costly AI expansion. The decline came despite…
The tech-focused Nasdaq plunged over 2% on Thursday, as growth stocks suffered due to concerns over AI-related expenses, following earnings from major companies like Tesla and Meta that failed to alleviate these worries. The social media giant Meta saw a 5.2% drop after introducing a new class of non-voting shares to help finance its expensive AI expansion, despite reporting strong quarterly revenue and a positive fourth-quarter sales projection.
The market decline marked a notable shift from the positive momentum seen on Wednesday, when strong performances from SpaceX and Super Micro led to an AI-driven rally. Investors, however, began to question the substantial capital needed to construct AI infrastructure and the uncertain timeline for its returns. As a result, the Philadelphia Semiconductor Exchange Index faced a potential loss of over $616 billion in market value, while the Nasdaq-100 was expected to lose nearly $1 trillion.
The semiconductor index declined 5.6% to its lowest level since July 29, with semiconductors and the Nasdaq having been greatly supported by investor enthusiasm.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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