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US tech stocks tumble to worst day since June amid AI concerns
US stocks ended sharply lower on Friday as a sell-off in technology shares dragged major indexes to their biggest daily losses since June.
Key points
- US stocks closed lower on Friday with technology shares driving major indexes to their biggest daily losses since June.
- Intel shares plunged nearly 30% after projecting fourth-quarter revenue of $15 billion to $16 billion and warning of personal computer
- Amazon shares fell around 2% as investors reacted to higher capital spending and concerns about cash flow from AI infrastructure investment.
Why it matters. The sell-off reflects investor concerns that AI investment is crowding out other businesses in capital markets as it absorbs a growing share of economic resources.
US stocks closed lower on Friday as technology shares drove major indexes to their largest daily losses since June. The Nasdaq Composite fell 2.86% to 25,437.00, while the S&P 500 dropped 1.84% to 7,578.48 and the Dow Jones Industrial Average declined 1.10% to 51,766.87. Intel shares plunged nearly 30% after projecting fourth-quarter revenue of $15 billion to $16 billion and warning of personal computer market weakness.
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US tech stocks tumble to worst day since June amid AI concerns
US stock markets experienced a significant sell-off on Friday, marking the worst single-day performance since June. The Nasdaq Composite fell 2.86% to close at 25,437.00, while the S&P 500 lost 1.84% to finish at 7,578.48. The Dow Jones Industrial Average dropped 1.10% to 51,766. Analysts suggest that the massive AI infrastructure boom in the US is raising concerns that Big Tech companies could be crowding out other businesses in capital markets. As AI investment absorbs a growing share of economic resources, the broader market is reacting to the potential displacement of traditional sectors.