Nasdaq drops 2.6% as AI spending bubble debate intensifies

US tech stocks, led by the Nasdaq, fell 2.6% amid growing investor concern that massive AI infrastructure spending may not yield commensurate returns, fueling debate over a potential bubble. The selloff reflects shifting sentiment toward high-valuation tech names, though the extent of further downside remains uncertain. This matters as AI capex has been a key driver of equity market gains, and a sustained correction could ripple into broader risk appetite.

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