US Stock Market Declines Amid AI Spending Concerns
US stocks experienced a significant decline on the last trading day of the month, driven by disappointing earnings reports from Amazon and Alphabet, which reignited concerns over the financial implications of Big Tech's investments in artificial intelligence.
The Nasdaq Composite fell by 3.3%, while the Dow Jones Industrial Average dropped over 500 points, a 1% decrease, and the S&P 500 saw a decline of 2%. This marked the second consecutive day of losses for the market, with Amazon's shares decreasing by 2% and Alphabet's stock suffering its worst day in over two decades.
In addition to the tech sector's struggles, Intel's stock plummeted by 30% in premarket trading following a disappointing earnings outlook. Conversely, ExxonMobil and Chevron saw their stocks reach record highs due to increased earnings from refining margins amid ongoing geopolitical tensions in the Middle East. Oil prices also rose, with Brent crude futures reaching $113 per barrel.
