Economy · 5 d ago
Arild Vågen · CC BY-SA 4.0 · Wikimedia Commons
US tech stocks slide as investors question the cost of AI
Nasdaq
-2.2%
S&P 500
-1.2%
The Nasdaq fell 2.2 per cent on Friday and the S&P 500 fell 1.2 per cent, wiping out its gain for October. The Dow was down a modest 0.3 per cent.
Alphabet shares fell more than 12 per cent on Thursday, their worst day since they began trading, after weaker-than-expected growth. Intel was on track to lose more than $130 billion US in value after a softer fourth-quarter outlook.
Why it matters
Amazon and Intel both said they are spending more than they are making as they build out AI. One analyst said the signs suggest the whole sector could slow down.
