A tough week for tech stocks could signal a loss of investor confidence in artificial intelligence.
The Wall Street Journal reports The Nasdaq Composite Index was down 3%, making it its worst week since President Donald Trump announced his broad tariff plan in April.
Tech 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 drops also occur after earnings reports in which Goal and microsoft indicated that they plan to continue spending heavily on AI (both companies were down about 4%).
“Valuations are stretched thin,” Cresset Capital’s Jack Ablin told the WSJ. “The slightest bit of bad news is exaggerated… and good news is simply not enough to change the situation because expectations are already quite high.”
Economic factors such as the ongoing government shutdown, declining consumer confidence, and widespread layoffs are also likely dragging down the stock market. But the S&P 500 and the Dow Jones Industrial Average, with less technological weight, did not do so badly, with falls of 1.6% and 1.2%, respectively.
