A tough week for tech stocks could be a sign of investors’ loss of confidence in artificial intelligence.
Wall Street Journal report The Nasdaq Composite Index was down 3% – making it its worst week ever President Donald Trump announces his sweeping tariff plan In April.
Tech companies that have performed well this year were among the hardest hit, with Palantir’s share price falling 11% this week, Oracle falling 9% and Nvidia falling 7%. This decline also comes after the earnings report meta And Microsoft Indicated that they plan to continue spending heavily on AI (both companies were down about 4%).
“Valuations are inflated,” Cresset Capital’s Jack Ablin told the WSJ. “A little bit of bad news gets blown out of proportion… and good news isn’t enough to move the needle because expectations are already so high.”
Economic factors like the ongoing government shutdown, declining consumer sentiment and widespread layoffs are also dragging the stock market down. But the less tech-heavy S&P 500 and Dow Jones Industrial Average didn’t fare as badly, with declines of 1.6% and 1.2%, respectively.
