Is Wall Street losing faith in AI?
A rough week for tech stocks could signal a loss of investor confidence in artificial intelligence.
The Wall Street Journal reports this that the Nasdaq Composite Index fell 3% – making this the worst week since President Donald Trump announced his sweeping tariff plan in April.
Technology companies that have otherwise performed well this year were among the hardest hit: Palantir’s share price fell 11% this week, Oracle fell 9% and Nvidia lost 7%. These declines also come after earnings reports that included Meta and Microsoft indicated they plan to continue spending heavily on AI (both companies were down about 4%).
“Valuations are too high,” Jack Ablin of Cresset Capital told the WSJ. “Just the tiniest bit of bad news is exaggerated … and good news is just not enough to move the needle because expectations are already quite high.”
Economic factors such as the ongoing government shutdown, declining consumer confidence and widespread layoffs are also likely to drag the stock market lower. But the less tech-intensive S&P 500 and Dow Jones Industrial Average didn’t fare as badly, with declines of 1.6% and 1.2%, respectively.
