Nasdaq faces $2 trillion wipeout in October as AI spending fears deepen
More than $2 trillion in market value is set to be wiped from the tech-heavy Nasdaq 100 this month, as Big Tech earnings intensified investor scrutiny of whether the billions being poured into artificial intelligence can generate returns quickly enough. The wipeout would amount to slightly more than SpaceX’s entire market value. The index has fallen over 5.8 percent so far in October as the AI…
The Nasdaq 100 index is projected to lose more than $2 trillion in market value in October, as concerns mount over artificial intelligence spending, according to recent reports. This significant decline would be equivalent to nearly the entire market value of SpaceX. The tech-heavy index has already experienced a fall of over 5.8 percent this month, with investor uncertainty surrounding the rapid deployment of AI technology and its ability to generate immediate returns.
Entrenched in the ongoing turmoil is a surge in spending forecasts from industry giants Meta Platforms, Alphabet, and Amazon.com, as they strive to bolster their AI infrastructure. This mounting AI expenditure has understandably alarmed investors, especially considering the rising cost of borrowing, which could render debt-funded investments riskier and less justifiable.
The market's reaction to corporate earnings has provided further insight into the impact of AI spending fears. Apple is scheduled to unveil its financial results next week, while Nvidia, a key player in the AI sector, is set to report mid-November. Investors are closely watching the performance of these companies as they navigate through the evolving AI landscape.
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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