Tech sell-off drags S&P 500 and Dow Jones into weekly losses amid AI doubts
Stock markets worldwide experienced a tumultuous week, with the S&P 500 and Dow Jones today both posting losses. The technology sector, particularly, felt the heat, with investors expressing concerns about AI project profitability and economic uncertainties. The S&P 500 and Dow Jones today closed the week in the red, down 1.7% and 1.2% respectively. The Nasdaq Composite also dipped, losing 0.21% on Friday and 3% over the week, its worst performance since April. This decline was largely driven by a pullback in technology stocks, many of which had previously soared on AI-related optimism. However, that enthusiasm seems to be waning as investors question the viability of massive AI investments. Adding to market strain is the ongoing U.S. government shutdown, now over a month long. Chinese markets also face pressure, with the Shanghai Composite Index already down 0.25% on Friday. Moreover, the University of Michigan's consumer sentiment index reported a sharper-than-expected decline, further weighing on households and stock market today. The week's market performance reflects investors' growing caution, with concerns ranging from AI project profitability to economic uncertainties and inflation. As markets brace for potential short-term volatility, investors await clearer signs of economic direction and corporate earnings to guide their decisions.
