Nasdaq and S&P 500 Post Worst Session Since June on AI Fears
Tech stocks dragged major indexes sharply lower as investors grew uneasy over heavy spending on artificial intelligence infrastructure.
Wall Street suffered its steepest single-day losses since June as a broad selloff in technology stocks pulled the Nasdaq composite and S&P 500 sharply lower, according to reporting by The New York Times.
Investor anxiety centered on mounting expenditures tied to artificial intelligence infrastructure, a theme that has increasingly shaped market sentiment as major technology companies commit vast capital budgets to building out AI systems and data centers. The concern reflects a growing debate over whether those outlays will translate into returns fast enough to justify current equity valuations.
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The dual decline in the Nasdaq and S&P 500 underscored how heavily the broader market has come to depend on the fortunes of a handful of large-cap technology firms. When confidence in those companies wavers, the ripple effects extend well beyond the tech sector, touching index funds and retirement portfolios held by millions of American investors.
Analysts noted that the selloff revived questions that have periodically surfaced throughout 2024 about the sustainability of AI-driven enthusiasm in equity markets. While no single catalyst was identified, the scale of the losses pointed to a confluence of caution rather than a discrete news event.
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