Investors Brace for More Volatility After $5 Trillion Tech Rout as AI Spending Fears Deepen
Updated
Updated · The New York Times · Nov 2
Investors Brace for More Volatility After $5 Trillion Tech Rout as AI Spending Fears Deepen
3 articles · Updated · The New York Times · Nov 2
Summary
$5 trillion in lost market value across AI and chip stocks has left investors preparing for another volatile week after last week’s tech-led sell-off.
AI infrastructure spending is driving the anxiety, as investors question whether revenue growth can justify rising outlays and heavier debt financing if demand falls short.
The pressure has hit major hyperscalers including Alphabet, Meta, Oracle and Amazon, with markets punishing any sign of overspending in recent earnings reports.
Tech stocks have fallen an average 3% the day after reporting September-quarter results — Jefferies’ worst such quarter in 12 years — as investors now await more earnings and U.S. midterm results.