The Nasdaq fell 2.6% in its largest one-day decline since June as investors questioned whether surging artificial-intelligence spending can continue, BlockBeats reported. The Dow rose 0.02%.
AI spending concerns weigh on technology shares
Meta fell 7% after disclosing additional spending commitments. BlockBeats said the company’s revenue growth did not prevent profit from missing Wall Street expectations. Investor and analyst Navellier said selling was spreading across the technology sector.
BlockBeats also cited Nvidia’s chief executive as saying AI lacks enough capital to support “neoclouds,” infrastructure providers for large AI cloud operators such as Meta and Amazon. Shares of SpaceX, Nvidia and CoreWeave fell, while the Philadelphia Semiconductor Index dropped 6.7%.
As technology stocks remained volatile, U.S. investors moved toward bonds and Treasury yields fell, according to the report. The market moves and comments were reported by BlockBeats; the flash did not independently confirm the statements or quantify Meta’s additional commitments.