Wall Street Falls as Tech Sell-Off Deepens
US stock indices closed lower on Thursday amid a sell-off in technology stocks. The S&P 500 fell 1.2%, and the Nasdaq lost 2.9%, while the Dow closed flat. Tech stocks were under pressure as corporate earnings failed to impress, renewing concerns over the AI trade, while the rotation away from semiconductor stocks continued. Meta sank 7% despite reporting higher earnings and revenue, as its credit risk reached a record high. Meta plans to ramp up capital spending reignited fears that tech firms will take on more debt to finance AI infrastructure. Other hyperscalers also declined, with Alphabet (-3.2%), Microsoft (-2.2%) and Amazon (-4.6%) falling ahead of their earnings reports next week. Tesla dropped 3.1% after scaling back its spending plans, with capital investment in the previous quarter coming in below expectations. Lam Research tumbled 11.8% after issuing a disappointing outlook. Among chipmakers, Nvidia lost 4.4%, Micron shed 6.3%, AMD plunged 8.1%, and Intel fell 8%.
US stock indices closed lower on Thursday amid a sell-off in technology stocks. The S&P 500 fell 1.2%, and the Nasdaq lost 2.9%, while the Dow closed flat. Tech stocks were under pressure as corporate earnings failed to impress, renewing concerns over the AI trade, while the rotation away from semiconductor stocks continued. Meta sank 7% despite reporting higher earnings and revenue, as its credit risk reached a record high.
Meta plans to ramp up capital spending reignited fears that tech firms will take on more debt to finance AI infrastructure. Other hyperscalers also declined, with Alphabet (-3.2%), Microsoft (-2.2%) and Amazon (-4.6%) falling ahead of their earnings reports next week. Tesla dropped 3.1% after scaling back its spending plans, with capital investment in the previous quarter coming in below expectations. Lam Research tumbled 11.8% after issuing a disappointing outlook.
Among chipmakers, Nvidia lost 4.4%, Micron shed 6.3%, AMD plunged 8.1%, and Intel fell 8%.