Nasdaq-100 on track to lose over $2 trillion this October
The Nasdaq-100 is on track to lose more than $2 trillion this October, mostly because investors are uneasy about whether big bets on artificial intelligence will actually pay off.
The index has fallen over 5.8% this month, with tech giants like Meta, Alphabet, and Amazon all ramping up their budgets to build out AI infrastructure, just as borrowing money gets more expensive.
Alphabet stock hit, Meta $97.5B worries
Alphabet's stock took a major hit after weak ad results and higher cash outflows, while Meta's plan to raise $97.5 billion has people worried about shareholder dilution and mounting AI spending.
Even though Microsoft and SpaceX reported some early wins from their AI investments, the overall surge in debt is making markets nervous, especially with forecasts that AI infrastructure spending could top $1 trillion next year.