Nasdaq retreats under pressure on artificial intelligence spending from Amazon and Intel
Technology stocks lose strength on Friday, and some investors migrate to defensive sectors as doubts about the return of AI grow.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 3 MIN
The Nasdaq opened Friday (30) with a sharp drop and reached its lowest level in more than two months. According to InfoMoney, based on information from Reuters, the index fell 592.2 points (-2.26%), to 25,592.486 points, at the beginning of the trading session.
The focus of the pressure was on two companies. According to InfoMoney, Amazon's spending plan on artificial intelligence and a warning from Intel about cash burn have reignited questions about how much AI infrastructure costs and when it will return. X-Trader News recorded that the Nasdaq futures contract fell 2.66% after Intel's weak projection and Amazon's balance sheet.
The other American indices also moved unevenly. According to the InfoMoney survey, the S&P 500 fell 1.16%, to 7,631.07 points, at the opening, and the Dow Jones rose 0.08%, to 52,383.9 points. Times Brasil, however, pointed to a drop of 155 points (-0.3%) in the Dow Jones on Friday, in addition to a drop of 2.2% in the Nasdaq Composite and 1.2% in the S&P 500 in the morning. The difference between the sources shows that the auction was still underway when the readings were taken.
According to Times Brasil, part of the capital left stocks linked to AI and went to defensive stocks, such as basic consumption and healthcare, which rose and helped support the Dow. In a note cited by the same report, JPMorgan assessed that technology sales should continue throughout the day, with fears about the ability to monetize artificial intelligence.
In Brazil, X-Trader News reported that the Ibovespa was sideways, the dollar was quoted at R$5.44 and oil rose, while the VIX, Wall Street's volatility meter, advanced 8.14%. The unemployment rate in the country, according to the same survey, is 5.2%. What is at stake now is whether big tech's billion-dollar spending on AI will generate enough revenue to justify the prices paid for the shares.
What changes for the investor
The movement suggests that the market has started to review how much it is willing to pay for companies that bet big on artificial intelligence. When volatility rises and part of the capital migrates to defensive sectors, those with exposure to technology tend to feel the fluctuations more, and the technology index may fluctuate more than the rest of the market. This coverage does not provide a buy or sell recommendation or price forecast, and the scenario will depend on upcoming balance sheets and signs about the return on investments in AI.
Automatically translated from Portuguese.
