Tech stocks fell as investors grew wary of artificial intelligence spending. The sell-off reflected mounting concern about the costs and returns of AI investment across the sector.
Meta shares fell after the company disclosed further spending commitments. Investors reacted to the scale of the additional outlay, which raised questions about how quickly the company can convert heavy AI investment into earnings.
Elsewhere in markets, Treasury yields dropped below 5%. The move eased some pressure on equity valuations, though it did little to offset the broader weakness in technology shares.
The Wall Street Journal's markets coverage highlighted the mix of forces driving the session, with AI-related worries at the center of the selling pressure in tech.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing