Nasdaq falls more than 2% as investors rotate out of tech after Amazon, Intel earnings: Live updates
The Nasdaq Composite plummeted more than 2% to near a three-month low as investors questioned returns on massive AI spending, fueled by disappointing earnings from Amazon and Intel. The tech-heavy index saw sharp declines, with Intel's stock crashing premarket and Amazon shares also falling. This sell-off extended to other tech stocks, raising concerns about the sector's future performance.
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- ✓ Nasdaq-100 futures fell sharply after Amazon and Intel reported earnings.
- ✓ Intel's stock crashed premarket, sliding 28% after issuing a weak outlook for the current quarter.
- ✓ Amazon shares also fell sharply after earnings highlighted negative cash flow.
- ✓ The Nasdaq Composite plunged more than 2% to near a three-month low.
What changed
Investors are increasingly rotating out of tech stocks due to doubts over AI spending returns, as evidenced by the sharp declines in Nasdaq futures and the broader tech sector.
Live updates
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Nasdaq falls over 2% as tech stocks tumble on AI spending fears
The Nasdaq Composite plummeted more than 2% to near a three-month low as investors questioned returns on massive AI spending, fueled by disappointing earnings from Amazon and Intel. The tech-heavy index saw sharp declines, with Intel's stock crashing premarket and Amazon shares also falling. This sell-off extended to other tech stocks, raising concerns about the sector's future performance.
Why it matters
The recent earnings reports from Amazon and Intel have sparked concerns about the costs associated with AI investments and the potential returns. The tech sector has been under scrutiny as investors seek clarity on the profitability of AI spending. This development has significant implications for the broader market, as tech stocks play a substantial role in major indices like the Nasdaq and S&P 500.
What is confirmed
- Nasdaq-100 futures fell sharply after Amazon and Intel reported earnings.
- Intel's stock crashed premarket, sliding 28% after issuing a weak outlook for the current quarter.
- Amazon shares also fell sharply after earnings highlighted negative cash flow.
- The Nasdaq Composite plunged more than 2% to near a three-month low.
Still unconfirmed
- CoinDesk reports that trading capital flowed out of AI-related stocks and into defensive market sectors.
What to watch next
- Upcoming earnings reports from other major tech companies
- Federal Reserve decisions on interest rates
- Further developments on AI investments and their returns
confidence 85%Sources used for this update (13)
- CNBC — Nasdaq-100 futures fall as Amazon and Intel swoon after earnings: Live updates
- WSJ — Stock Market Today: Intel Stock Crashes Premarket as Tech Selloff Extends — Live Updates
- CNN — Wall Street sell-off continues as investors question returns on massive AI spending
- Yahoo Finance — Stock market today: Nasdaq dives, S&P 500 and Dow fall as Amazon, Intel earnings fuel tech rout
- The New York Times — Tech Stocks Tumble, but Broader Market Is Holding On
- CBS News — Tech stocks crushed as Nasdaq futures tumble nearly 800 points
- economictimes.indiatimes.com — US Stock Market Live Updates: Nasdaq sinks 2.2% to near three-month low as AI spending fears deepen
- BBC — US tech stocks see sharp falls over AI cost fears
- Yahoo Finance — Wall Street tech rout deepens on doubts over AI spending
- www.businessinsider.com — Stock Market Today: Nasdaq Plunges 3% After Grim Intel ...
- www.kucoin.com — Nasdaq Falls More Than 2% as Investors Sell Off Tech Stocks ...
- www.ibtimes.com — Amazon and Intel Plunge After Disappointing Results, Fueling ...
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