Nasdaq slides as AI spending worries roil tech
QQQ•The Nasdaq Composite fell 2.6% on Thursday, its steepest drop in more than four months, as technology earnings revived concerns about the cost of competing in AI. The S&P 500 fell more than 1%, while the Dow edged higher.
1. Technology shares retreat
The Nasdaq Composite fell 2.6% in its steepest decline in more than four months, and the S&P 500 dropped more than 1%; the Dow eked out a gain. Fresh earnings from high-profile technology companies reignited concerns about AI competition costs, while uncertainty surrounding upcoming midterm elections remained a headwind for sentiment.
2. Sector moves diverge
A majority of S&P 500 sectors finished higher, led by consumer staples, which gained 3.1%. Technology and communication services each fell about 3%, while the Philadelphia Semiconductor Index dropped 6.7%, its biggest decline since June 23. The 10-year Treasury yield slipped below 5% for the first time in roughly a month; the PHLX Housing Index rose 4.6%, and regional banks and transports also gained.
