Apple, Nvidia and other megacap stocks drag S&P 500 lower as AI spending fears weigh on markets
Apple, Nvidia and other megacap stocks weigh on the S&P 500 as AI spending fears, falling share prices, oil prices and US midterm risks worry investors.
The S&P 500 has fallen as major tech stocks, including Apple, Nvidia, Amazon, and Tesla, are struggling and underperforming. Experts worry that the heavy spending on AI by these companies may not generate sufficient returns, leading to concerns about their cash flow. Investors are becoming less confident due to increasing doubts about when AI investments will start generating returns.
The performance of these major stocks is crucial as they account for a large share of the S&P 500. The weakness in these stocks is holding back broader market gains. In addition to AI spending fears, rising oil prices and uncertainties ahead of the US midterm elections are also contributing to the market's cautious sentiment.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
