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Nasdaq 100 drops nearly 4% as Intel shares tumble 30% amid AI fears
Nasdaq 100 drops nearly 4% as Intel shares tumble 30% amid AI fears
Key points
- The Nasdaq 100 dropped nearly 4% on Friday as major technology companies reported disappointing results.
- Intel shares fell roughly 30%, marking its biggest one-day drop in more than 40 years.
- Major US technology firms are expected to spend around $750 billion on AI this year.
Why it matters. Matt Maley warned that investors could move money out of stocks and into cash if the market continues to fall in a more compelling manner.
Wall Street stocks fell sharply on Friday as disappointing results from major technology companies raised concerns about artificial intelligence spending. Intel suffered its biggest one-day fall in over 40 years, dropping roughly 30% after its outlook missed market expectations. Matt Maley of Miller Tabak warned that investors could move money out of stocks and into cash if the market continues to fall.
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Nasdaq 100 drops nearly 4% as Intel shares tumble 30% amid AI fears
Wall Street stocks experienced a sharp decline on Friday, with the Nasdaq 100 index dropping nearly 4% as weak results from major technology companies fueled investor anxiety. Intel suffered its most significant one-day fall in over four decades, plummeting approximately 30% after revealing a lacklustre outlook that raised questions about the future of AI capital allocation. The broader market impact was evident as the S&P 500 also fell around 2%, reflecting a sector-wide reassessment of the money being poured into artificial intelligence. Analysts noted that the sharp decline in Intel's stock value wiped more than $146 billion off its market capitalization, signaling a potential correction in the tech-heavy index.