The Guardian reported that a sharp sell-off of technology shares has taken a significant toll on US markets. Investor skepticism about whether massive investments in artificial intelligence will deliver quick returns, combined with weaker-than-expected earnings from leading tech firms, triggered the downturn.
The decline accelerated after earnings reports earlier this month, driving the Nasdaq composite down more than 3% on Friday and wiping out hundreds of billions of dollars in value. In total, the tech-heavy index lost almost $1tn in a single week and around $2tn over the past month.
The S&P 500 also fell more than 1% on Friday, shedding hundreds of billions in market value and putting it on track to erase its October gains despite having reached an all-time high earlier in the month. The Dow Jones Industrial Average fared better, declining less than its tech-focused counterparts.
Analysts say the weakness in technology stocks is the primary driver of the broader market slide, highlighting concerns that AI-related spending may not produce the expected profitability in the near term.
Source: The Guardian.
