Source CBS News · Published · Open the original ↗
Markets
Tech stocks tumble as AI debt fears rattle Wall Street
Wall Street is pulling back from chipmakers and other tech companies amid concerns about the debt incurred to build out AI.
Financial markets slumped on Friday as investors bailed on technology stocks amid concerns that companies exposed to artificial intelligence are starting to wobble.
The tech-heavy Nasdaq Composite tumbled 573 points, or 2.1%, to end at 26,140, closing out its worst week since June. The broader S&P 500 and blue-chip Dow Industrial Average sank 1.1% and 0.3%, respectively.
Chipmakers and other tech companies have been under pressure this week as investors worry about the heavy borrowing associated with the emergence of AI and the rapid buildout of thousands of data centers required to provide computing power for AI models.
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