In brief
In early trading on Friday, U.S. stocks slipped, spurred by disappointing earnings from key technology firms. The Nasdaq Composite fell over 2 percent, while Intel shares plunged nearly 30%. Investors cited worries over the high costs of artificial‑intelligence investments.
U.S. stocks fell sharply in early Friday trading, with the Nasdaq Composite slipping more than 2 percent as investors reacted to disappointing earnings from a handful of technology giants.
Xinhua reports that Intel shares plunged nearly 30 percent after the chipmaker posted disappointing results and issued a weaker‑than‑expected outlook, prompting a sell‑off in the broader market.
Amazon also slid, falling 4.4 percent on Friday according to Xinhua, after its earnings revealed negative free‑cash‑flow figures and an outlook that seemingly undercuts expectations for continued AI spending.
Alphabet shares tumbled more than 12 percent on Thursday, with Xinhua noting weaker‑than‑expected revenue growth that contributed to the broader tech slump.
Reuters added that Nasdaq futures fell more than 2 percent on Friday after concerns about Amazon’s plans for continued heavy AI spending and Intel’s warning of high cash burn deepened, reflecting investor anxiety about future costs.
In pre‑market trading, CNBC reported that Amazon shares fell 7 percent and Intel shares plunged 25 percent, reinforcing the message that earnings disappointments are shaking confidence in the sector.
Xinhua also highlighted that the sharp decline reflects mounting pressure on technology stocks amid worries about the costs and prospects of the artificial‑intelligence investment boom, underscoring the sector’s volatility.