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Tech stocks set to wipe out $1 trillion as AI boom fears deepen
NBC News • • general
Key Points:
- Tech stocks plunged on Friday, with the Nasdaq 100 falling 3.4%, heading for its worst one-day drop since mid-June and a market value loss exceeding $1 trillion.
- Amazon shares dropped 3% after reporting faster-than-expected AI spending growth and slower core business growth, while CEO Andy Jassy warned of continued increased capital expenditures through 2027.
- Intel’s stock plunged 30% following a disappointing earnings report forecasting lower profits and sales due to supply chain issues and weak PC demand, despite recent company turnaround efforts and increased government ownership.
- Alphabet shares also declined after a historic $500 billion market value loss on Thursday, and semiconductor-related indices and ETFs experienced sharp declines amid broader tech sector weakness.
- The tech sell-off boosted demand for U.S. Treasuries, temporarily lowering bond yields, as big AI companies’ borrowing for data center investments competes with government debt for capital, influencing recent Treasury yield increases.
