Nasdaq tumbles 5.5% as investors question AI spending
U.S. stocks suffered their steepest one-day decline since April 2025 on Thursday as a sell-off in technology shares intensified concerns over the returns on artificial intelligence investments, Qazinform News Agency reports.
According to Anadolu, the Nasdaq Composite fell 5.52%, losing 1,421.52 points to close at 24,315. The Dow Jones Industrial Average dropped 3.44%.
Investors reassessed the high valuations of major technology companies amid growing uncertainty over when their substantial spending on AI would generate meaningful profits.
Elevated borrowing costs also weighed on sentiment, while profit-taking spread to industrial and consumer stocks, broadening the decline beyond the technology sector.
The losses marked the sharpest daily retreat for major U.S. stock indexes since President Donald Trump’s sweeping tariff announcements shook global markets in April 2025.
European markets also mostly declined Thursday. The pan-European Stoxx Europe 600 slipped 0.38%, while Britain’s FTSE 100 and Germany’s DAX each fell 0.43%. France’s CAC 40 bucked the trend, rising 0.34%.
Earlier, Qazinform reported on the rapid expansion of AI investment, with governments and private companies building data centers, buying advanced chips and expanding cloud infrastructure.
