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Wall Street Tumbles as Tech Sell-Off Drives Biggest Daily Losses Since June
Wall Street tumbles as tech sell-off drives major US indexes to their biggest daily losses since June.
Key points
- The Nasdaq Composite fell 2.86% to close at 25,437.00 on Friday.
- Intel shares plunged nearly 30% after a weaker-than-expected fourth-quarter revenue forecast of $15 billion to $16 billion.
- Alphabet shares lost more than 12% on Thursday before the Friday sell-off.
Why it matters. The story says the AI infrastructure boom is raising concerns that Big Tech companies could crowd out other businesses in capital markets.
US stocks closed sharply lower on Friday, with the Nasdaq Composite down 2.86% at 25,437.00 and the S&P 500 falling 1.84% to 7,578.48. Intel shares plunged nearly 30% after the chipmaker forecast fourth-quarter revenue of $15 billion to $16 billion, wiping out more than $100 billion in market value. Amazon shares fell around 2% on higher capital spending and cash-flow concerns.
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Wall Street Tumbles as Tech Sell-Off Drives Biggest Daily Losses Since June
US stocks ended sharply lower on Friday after a sell-off in technology shares pulled the major indexes down. The Nasdaq Composite fell 2.86% to close at 25,437.00. The S&P 500 lost 1.84% to finish at 7,578.48, while the Dow Jones Industrial Average dropped 1.10% to 51,766. Analysts cited heavy investment in data centres, weakening free cash flows and disappointing earnings outlooks at large technology firms. Business Today reported concerns that the US AI infrastructure boom could push Big Tech companies to crowd out other businesses in capital markets as AI spending absorbs a growing share of economic resources.
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.