The Nasdaq Composite dropped to a seven-week low amid growing investor skepticism about the timeline for returns from massive AI infrastructure investments by tech giants. The cautious mood spilled into cryptocurrency markets, pushing Bitcoin under the $63,000 mark.
Early selling pulled the Nasdaq from above 25,200 down to an intraday low close to 24,780 before settling near 24,932. The US100 index also extended its recent slide, closing around 27,851 after breaking key support at 28,187. These declines reflect concerns over the sustainability of tech spending trends.
Bitcoin echoed this sentiment, falling nearly 3% to trade at about $63,391. Trading volume remained solid at $27.76 billion, with market capitalization holding near $1.27 trillion. The crypto downturn aligns with the broader risk-off mood affecting equities.
Record AI Investments Stir Unease
Despite investor worries, Alphabet, Meta, Microsoft, and Amazon plan to pour around $730 billion into AI infrastructure by 2026. This surge in spending aims to drive demand for data centers, AI chips, and related hardware, benefiting suppliers like Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing. Wall Street expects these investments to climb further in 2027.
Still, investors question how soon these massive outlays will translate into profits, fueling the market's cautious retreat. The tension between historic AI spending and near-term returns casts a shadow over tech stocks and ripple effects across crypto markets.
This content is for informational purposes and does not constitute financial advice.
