(Bloomberg) — Wall Street got a reality check after a disappointing start of the megacap earnings season fueled concern the artificial-intelligence frenzy that has powered the bull market might be overblown.
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A selloff in big tech sent the S&P 500 to its worst day since December 2022, ending the best stretch without a 2% drop since the start of the global financial crisis. Losses were more pronounced in the Nasdaq 100, which tumbled over 3.5%. Alphabet Inc. slid 5% after sinking more resources into its drive to outmatch rivals in AI, with spending higher than analysts expected. Tesla Inc.’s profit miss and the Robotaxi delay spurred a 12% stock plunge.
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“Investors are finally waking up to all that AI spend and realizing it is much more of an expense right now rather than a revenue generator,” said Peter Boockvar at The Boock Report.
Wednesday’s…
