Tech Stocks Plummet Amid AI Investment Concerns

Microsoft and Meta lead a tech sell-off as investors react to increased AI spending and cautious revenue forecasts.

Microsoft and Meta stocks fell sharply due to concerns over escalating AI-related capital expenditures.
Despite beating earnings estimates, Microsoft's forecasted cloud revenue growth disappointed investors, contributing to a 6% drop in its stock.
Meta raised its capital expenditure forecast, citing ongoing investments in AI, which led to a 4% decline in its shares.
The Nasdaq fell nearly 3%, dragging down the S&P 500 and Dow Jones, marking the end of a five-month winning streak for the S&P 500.
The Federal Reserve's preferred inflation gauge showed a slight cooling, while jobless claims fell more than anticipated, indicating a mixed economic outlook.