WS #16323
Technology stocks are leading the market decline, with the Nasdaq and S&P 500 opening lower. The selloff is concentrated in high-multiple growth names, particularly semiconductors, where AMD and Intel fell over 5% and Lam Research plunged 10% on weak guidance. Meta also dropped 6% as investors reacted negatively to its higher AI spending outlook, despite beating earnings estimates. This rotation out of tech into defensives suggests growing concern over the sustainability of current AI capital expenditure levels and near-term demand.
Tech Selloff and AI Capex Concerns
Technology stocks are leading the market decline, with the Nasdaq and S&P 500 opening lower. The selloff is concentrated in high-multiple growth names, particularly semiconductors, where AMD and Intel fell over 5% and Lam Research plunged 10% on weak guidance. Meta also dropped 6% as investors reacted negatively to its higher AI spending outlook, despite beating earnings estimates. This rotation out of tech into defensives suggests growing concern over the sustainability of current AI capital expenditure levels and near-term demand.