From NBC News · Rob Wile · · 1m 20s
Stock Market Shows Strain as AI Investment Doubts Grow
U.S. stocks dip after AI investment concerns rise.
In brief
U.S. stocks dip after AI investment concerns rise. U.S. stocks fell as investors worry AI spending may not yield returns. Originally reported by NBC News.
U.S. stocks hit record highs
U.S. stocks reached record highs after nearly half of U.S. economy growth this year was attributed to tech-related spending.
Stocks show signs of strain
U.S. stocks fell 1% from week-ago highs as investors fret about returns on trillions in AI investments.
Tech sector declines
The tech-heavy Nasdaq dropped more than 3% below its peak last week as quarterly revenue growth at Anthropic slowed.
AI company revenue
Anthropic, expected to be worth more than $1 trillion when public, reported $17 billion in revenue and profitability.
China's memory chip threat
Rising concerns that Chinese memory technology companies could undermine or overtake Western rivals in the market.
Bond sales for data centers
Investors sold bonds backing some data centers due to fears AI revenues won't cover borrowing costs.
Economist lowers S&P target
Economist Ed Yardeni lowered his year-end S&P 500 target to 7,900 from 8,400 due to investor caution about AI and inflation.
Current S&P 500 level
The S&P 500 currently sits at about 7,600, below Yardeni's revised target.
At a glance
U.S. stocks fell as investors worry AI spending may not yield returns.
