Nasdaq drops most since June over AI concerns
The Nasdaq index recorded its biggest daily loss since June, following a decline in technology stocks, especially semiconductor companies, after earnings results related to artificial intelligence raised concerns over a costly race to spend on this technology. Despite Meta's strong results and its generating positive cash flow externally, its shares fell due to plans to issue non-voting shares. Meanwhile, Tesla reduced its capital expenditure plans for 2026, despite posting positive free cash flow. Experts noted that the tech market currently suffers from gaps in the AI story, amid rising oil prices resulting from Houthi attacks on Saudi Arabia, which heightens inflation risks and the prospect of higher interest rates.
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