US: Wall Street closes sharply lower as AI cash burn fears spark tech sell-off
All three main equity indices close lower on the week
US stocks experienced a sharp decline on Friday, with the Nasdaq suffering its largest one-day percentage drop since June 5. The decline was driven by disappointing quarterly results from Intel and Amazon, which fueled concerns about AI-related companies' significant investments in the emerging technology. The tech-heavy Nasdaq index dropped 2.9 percent, marking a 7.8 percent decline from its all-time closing high reached just a few days earlier on October 6.
Intel's shares plummeted by 28.6 percent, while AMD saw a 10.9 percent drop. Other chip stocks also experienced significant losses, with the broader chips index shedding 7.2 percent, marking a monthly loss of over 15 percent. Server makers Dell and HP also fell, by 10.8 percent and 9.6 percent, respectively. Oliver Pursche, senior vice-president at Wealthspire Advisors, noted that this week has been dominated by discussions about the future of artificial intelligence and its potential return on investment.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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