Tech stocks crushed as Nasdaq futures tumble nearly 800 points
Summary
Nasdaq futures fell nearly 800 points, or 2.7%, before Friday’s market open after weak earnings from Alphabet, Amazon and Intel renewed concerns about the returns on artificial intelligence investments. Futures for the S&P 500 and Dow also declined as investors weighed companies’ data-center spending and related debt.Key Facts
- Nasdaq Composite futures dropped nearly 800 points, or 2.7%.
- Intel shares fell more than 26% in premarket trading.
- Alphabet shares had fallen more than 12% on Thursday, their largest one-day decline since Google went public in 2004.
- S&P 500 futures were down 1.1%, while Dow futures fell 0.1%.
- Disappointing earnings from Alphabet, Amazon and Intel contributed to investor concerns about AI prospects.
- Investors questioned whether AI investments will deliver expected returns and whether companies can sustain debt used to fund data centers.
- A UBS investment chief advised clients to diversify their equity portfolios beyond AI.
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