Why Wall Street is worried about AI investments
Wall Street had a rough Thursday, with the Nasdaq dropping 2%, and both the S&P 500 and Dow Jones also sliding.
The big reason? Investors are getting uneasy about how much money is being poured into AI, and whether it'll really pay off.
Tech giants' AI spending raises investor eyebrows
A lot of tech giants are collectively expected to spend around $650 billion in the race for AI dominance, but now people are questioning if those bets will work out—especially in areas like software.
If these investments flop, portfolios heavy on big tech could get rocky.
Cisco's earnings trigger tech selloff
Cisco's disappointing earnings kicked off a wider tech selloff, hitting stocks like Apple, NVIDIA, and Amazon.
Equinix, a data-center company in the S&P 500 real estate index, rallied 10.4%, while software firms like AppLovin tumbled 19.7% after reporting fourth-quarter results.
Transport sector fears job losses due to AI automation
The transport sector slid 4% on fears that AI automation could impact jobs.
All eyes are now on Friday's inflation report to see what happens next with interest rates.