Wall Street sells off as investors question returns on big AI spending
US stocks fell sharply Friday after tech earnings renewed doubts that heavy AI investment will pay off.
Business
Tech rout wipes out over $1 trillion as Nasdaq has worst day since June
US stocks fell sharply Friday after weak earnings from Amazon and Intel renewed worries about heavy AI spending. The Nasdaq 100 dropped about 3.4% in afternoon trading, nearing correction territory.
S&P lowers Meta's credit outlook over cash flow and AI spending
S&P Global Ratings revised its outlook on Meta Platforms downward, citing concerns about cash flow and capital expenditure. Bloomberg reported the outlook was cut to negative because of AI spending.
Alphabet shares fall more than 12% after earnings, wiping out about $500 billion
Alphabet stock sank more than 12% on Thursday after its third-quarter results, erasing roughly half a trillion dollars in market value.
US economy grows 3.4% in third quarter; September inflation edges up
Commerce Department data showed GDP growing at a 3.4% annualized rate in the third quarter, above the roughly 3.2% economists expected and up from 2.2% in the second quarter. Consumer spending rose 3.8%.
Federal Reserve holds rates steady, with two officials dissenting in favor of a hike
The Fed left interest rates unchanged at its October 28 meeting, choosing to wait for more data. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring a quarter-point increase.