business
Nasdaq Posts Third Straight Weekly Loss as Tech Stocks Fall on AI Spending Worries
The Nasdaq posted a third straight weekly loss as tech stocks fell on AI spending worries.
Key points
- The Nasdaq Composite plunged 2.9% on Friday, its first three-week losing streak since March.
- Intel issued a weak forecast, sending its stock to its steepest drop since the 1970s.
- Anthropic's prospectus disclosed a net loss for the first half of the year of $80 billion.
Why it matters. Investors are growing increasingly worried about the whole AI trade just as Anthropic pursues a potentially record-setting initial public offering in the coming weeks.
The Nasdaq Composite fell 2.9% on Friday, its first three-week losing streak since March, as investors grew worried about the AI trade. Intel's weak forecast sent its stock to the steepest drop since the 1970s, dragging Nvidia and the semiconductor sector lower. Google reported negative free cash flow of $9.1 billion, and its stock tanked almost 13% on Thursday, its worst day ever.
Latest updates
Nasdaq Posts Third Straight Weekly Loss as Tech Stocks Fall on AI Spending Worries
The Nasdaq Composite is on track for its first three-week losing streak since March, according to CNBC. Concerning projections from major cloud and AI infrastructure companies, known as hyperscalers, pushed technology stocks lower this week. Anthropic, the AI developer led by Dario Amodei, published its IPO prospectus during the sell-off. CNBC reported that the company's listing path became more difficult within days of the filing. Investors remain focused on whether heavy spending on artificial intelligence will generate returns soon enough to justify valuations.
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