Everything About AI
NextFin News - U.S. stocks fell Thursday as the tech-heavy Nasdaq Composite dropped 2.6% and the S&P 500 lost 1.21%, with Meta Platforms’ sell-off reigniting concerns about the cost of AI infrastructure. The Dow edged up 0.02%, held up by non-tech names. The session’s central tension returned to the same question that has driven the market for two weeks: whether the AI buildout can earn a return on its enormous spending. Brent crude climbed above $111 a barrel, adding inflation pressure. The Philadelphia Semiconductor Index fell as much as 5.6%, its lowest level since July 29, putting more than $616 billion of market value at risk.
The Dow Jones Industrial Average rose 0.02%
The S&P 500 Index fell 1.21%
The Nasdaq Composite declined 2.60%
Stock & Sector Performance
Technology led the decline. The Nasdaq closed at 26,008.86, down about 694 points, and the S&P 500 at 7,663.43. Meta Platforms fell nearly 7% even after beating revenue expectations and offering upbeat guidance, as investors focused on its heavy AI funding needs, its plan for non-voting Class C shares and a 2-for-1 stock split announcement. Tesla was volatile after reporting an earnings beat, trading lower after investors weighed its reduced 2026 capital spending of about $20 billion against higher planned spending in 2027 and 2028 on Optimus, Cybercab and Terafab. Nvidia fell, and memory stocks such as Micron also declined. A CoreWeave downgrade added pressure on AI names. Spotify soared more than 9% on improved margins, while Dow Inc. rose after its quarterly results beat expectations. Gold dropped more than 2% at midday.
Hot Sectors to Watch
Semiconductors and AI infrastructure were again the market’s focal point, and the selling was sharper than at any point earlier this month. The Nasdaq-100 was on track to lose nearly $1 trillion in market value, and the semiconductor index’s drop to its lowest level since late July confirms that the correction that began last week has deepened. Wednesday’s SpaceX-driven rally now looks like a short-lived bounce within that downtrend rather than a reversal.
Energy-related and defensive names were the relative winners, which fits the pattern of rotation away from AI-heavy growth into value stocks. The Dow’s flat finish, against a 2.6% Nasdaq decline, shows how wide the gap has become between the two ends of the market.
Major Story of the Day
Meta’s post-earnings sell-off was the day’s dominant story. The stock fell nearly 7% despite a revenue beat and in-line fourth-quarter guidance, after the company reported a quarter in which capital spending reached $34.91 billion and free cash flow turned negative. The decline came after Meta’s earnings, released after Wednesday’s close, had initially lifted the shares in extended trading. Investors weighed the company’s comments about the large amount of AI funding needed, along with the planned Class C non-voting shares, which would let Meta issue stock without diluting Mark Zuckerberg’s voting control. Tesla’s own report showed a beat on revenue and adjusted earnings, but its lower 2026 capex guidance and thin operating margin left the stock under pressure.
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