Tech Rout Hits Stocks as AI Spending Concerns Intensify — US Market Wrap
Wall Street faced a reality check as a sharp selloff in technology shares fueled concerns that the AI frenzy powering the equity bull market may have become overextended. Disappointing tech results triggered the worst stock decline since June, with the Nasdaq 100 briefly entering technical-correction territory. The index sank 3.5% Friday. Intel suffered its steepest drop in more than four decades after its outlook missed estimates. Amazon fell 1.4% on plans for higher capital spending. The S&P 500 dropped 1.8%, falling below its key 100-day moving average. A wave of selling also hit crypto after Binance disclosed a record hack, renewing concerns over the security of customer assets. Rising oil prices added to trader anxiety amid speculation that the US could resume strikes against Iran. Treasuries were little changed Friday but posted a solid monthly gain amid a rush for safety. The core businesses of America’s tech giants - the advertising, consumer and retail engines supporting a combined $750 billion in AI spending this year - are beginning to show signs of slowing.
Wall Street faced a reality check as a sharp selloff in technology shares fueled concerns that the AI frenzy powering the equity bull market may have become overextended. Disappointing tech results triggered the worst stock decline since June, with the Nasdaq 100 briefly entering technical-correction territory. The index sank 3.5% Friday. Intel suffered its steepest drop in more than four decades after its outlook missed estimates.
Amazon fell 1.4% on plans for higher capital spending. The S&P 500 dropped 1.8%, falling below its key 100-day moving average. A wave of selling also hit crypto after Binance disclosed a record hack, renewing concerns over the security of customer assets. Rising oil prices added to trader anxiety amid speculation that the US could resume strikes against Iran.
Treasuries were little changed Friday but posted a solid monthly gain amid a rush for safety. The core businesses of America’s tech giants - the advertising, consumer and retail engines supporting a combined $750 billion in AI spending this year - are beginning to show signs of slowing.