US stocks tumble as AI spending concerns hit tech earnings
The Nasdaq fell 2.8% and the Dow slipped 1.2% on Friday, driven by disappointing earnings from Amazon and Alphabet and worries over the cost of artificial-intelligence investments.
U.S. equity markets posted their steepest declines of the month on Friday as earnings reports from Amazon and Alphabet revived doubts about the sustainability of heavy AI spending. The Nasdaq Composite dropped 2.8%, while the Dow Jones Industrial Average fell about 1.2% (over 600 points) and the S&P 500 slipped roughly 2%.
Both Amazon and Alphabet posted earnings misses, prompting a broader sell-off in technology stocks. Intel’s shares plunged after its fourth-quarter outlook fell short, and the sector’s exchange-traded fund (XLK) hit session lows.
Energy stocks provided limited support, with ExxonMobil and Chevron briefly reaching record highs after reporting higher refining margins amid ongoing Middle-East tensions. Pharmaceutical firm AstraZeneca also posted an earnings beat before the market open.
Oil prices rose, pushing Brent crude to $112 a barrel and WTI to $104, adding further pressure on equities.
"Our investigators are observing never-seen-before laundering patterns with the stolen funds from the Binance exploit," Chainalysis said in a social-media post.
"We are committed to covering all hacked losses through our company funds. Your assets are safe," Binance co-CEO Richard Teng said on social media.
Bitcoin fell more than 2% after a $6.3 billion hack of the Binance exchange, the largest theft of its kind recorded.
Two Federal Reserve presidents, Alberto Musalem of St. Louis and Tom Barkin of Richmond, indicated that further rate hikes may be needed to curb inflation, though the Fed voted to keep rates unchanged this week.