Nasdaq dives 750 points as investors reassess AI spending
Summary
Stocks fell sharply as investors became worried about whether the large spending on artificial intelligence (AI) will bring profits. The Nasdaq dropped 751 points due to concerns about rising debt for AI companies and higher oil prices.Key Facts
- The Nasdaq Composite Index fell 751 points, or 2.8%, on Thursday.
- The S&P 500 dropped 1.4%, and the Dow Jones fell 0.1%.
- AI companies are spending heavily on data centers, leading to large amounts of debt.
- There is concern if these AI companies will make enough profit to cover their costs.
- The Brookings Institution estimates AI infrastructure will cost over $10 trillion between 2025 and 2032.
- Meta’s stock dropped 7.4% after mixed earnings with higher revenue but lower profits.
- Tesla’s stock fell 2.1% after reporting stronger profits but weaker revenue than expected.
- Oil prices rose due to worries about the Iran war, with U.S. oil near $99.44 a barrel and Brent crude at $113.
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