Wall Street Slumps as AI Spending Concerns and Tech Earnings Trigger Broad Sell-Off
US stocks tumbled sharply on Friday, capping off a difficult month for the markets as disappointing corporate earnings and escalating anxiety over heavy artificial intelligence spending weighed heavily on investor sentiment.
The market downturn followed a wave of weaker-than-expected earnings reports and forward-looking guidance from major technology companies. Amazon shares declined after reporting its deepest cash burn on record, fueled by massive capital outlays on data centers and equipment for AI initiatives. The losses compounded earlier tech sector jitters sparked by recent earnings misses from Alphabet and a steep premarket drop for Intel following a disappointing fourth-quarter outlook.
Beyond equities, global markets reacted to a confluence of external pressures. Oil prices advanced amid geopolitical tensions in the Middle East, with Brent crude pushing higher. Concurrently, cryptocurrency markets saw increased volatility following a record $6.3 billion cyber heist at digital asset exchange Binance.
Despite the broader market retreat, select sectors found pockets of strength. Energy majors such as ExxonMobil and Chevron touched record highs as wider refining margins lifted earnings, offering a rare bright spot during a challenging end to the trading month.
