S&P 500, Nasdaq Fall Third Straight Week on AI Spending Concerns
Published 2 d ago3 sourcesEvidence: Reported
US tech stocks extended losses on Monday, with the Nasdaq down another 1.4%, while industrial shares showed relative strength. The divergence suggests a rotation out of growth into value sectors, though the trigger for the continued tech selloff is not specified. This matters as persistent tech weakness could weigh on broader equity indices and signal shifting risk appetite.
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US equities experienced a significant sell-off in AI-related and technology stocks, with the Nasdaq declining for a third consecutive week and falling over 1% on multiple recent trading days. This downturn is confirmed to be driven by investor concerns regarding the profitability and heavy capital expenditures associated with AI investments, leading to a confirmed market rotation out of tech into traditional value and defensive sectors. The sustainability of this AI sell-off remains uncertain, but the trend indicates growing investor caution.
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