US stocks tumble after disappointing tech results - Bangkok Post

NEW YORK - Wall Street stocks fell early on Friday, with the tech-focused Nasdaq sinking more than two percent following disappointing results that added to worries about the artificial intelligence investment boom.

Intel shares slid nearly 30% in early trading following poor results, while Amazon lost 1.8%, further rattling investors after earlier drops by Meta and Google parent Alphabet following their earnings reports.

“The bulk of what’s happening in the stock market is in reaction to tech earnings, and particularly some of the biggest players in the sector,” said Chris Low of FHN Financial.

About 20 minutes into trading, the Dow Jones Industrial Average was down 0.3% at 52,180.95. The broad-based S&P 500 declined 1.2% to 7,626.19, while the Nasdaq Composite Index dropped 2.2% to 25,598.02.

Enthusiasm about the multi-trillion dollar AI infrastructure buildout has been a supporting dynamic for equities over the last couple of years, with the market also optimistic about the potential for the new technology to spur greater productivity growth.

But the market has also contended with increased questioning about the payoff to the costly capital programmes initiated by Amazon, Google and other tech giants. There have also been questions about financing and job loss.

The tech giants are “showing some pretty significant growing pains as they aggressively pursue the AI build-out”, said Low. “The thinking is that these signs that suggest that the entire sector is going to slow down.”