Nasdaq tumbles on AI spending concerns and jump in oil prices: Live updates - CNBC
The Nasdaq and S&P 500 experienced significant declines as investors reacted to concerns over high AI infrastructure spending and rising oil prices. Tech giants like Meta, Nvidia, and AMD saw share prices drop following commentary on capital scarcity and geopolitical risks.
Why it matters
This market volatility highlights growing investor skepticism regarding the immediate profitability of massive capital expenditures in the artificial intelligence sector.
Stocks mostly slid Thursday on renewed concerns around spending by artificial intelligence companies, while oil prices jumped amid rising geopolitical tensions.
The Nasdaq Composite pulled back 2.6% to 26,008.86, while the S&P 500 shed 1.21% to close at 7,663.43. The tech-heavy index suffered its worst session since June, while the S&P 500 posted its worst daily performance since July. The Dow Jones Industrial Average inched up 11.89 points, or 0.02%, to end at 52,867.98.
Meta Platforms slipped about 7%, even as it exceeded revenue expectations and offered upbeat guidance. Technology more broadly was under pressure as well as ongoing concerns about artificial intelligence spending persisted. Advanced Micro Devices fell more than 8%, while Micron Technology and Nvidia dropped 6% and 4%, respectively.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in