Tech stocks plunged Friday morning, putting the Nasdaq 100 index on course for a more than $1 trillion drop. In early trading, the index fell 3%, which would be its worst one-day drop since mid-June.
\n\nSparking the declines were shares of Amazon, which fell 3%, and Intel, which plunged 30%. Both companies reported quarterly earnings this week that failed to reassure investors and analysts.
\n\nIn late trading Thursday, Amazon had fallen as much as 10%.
\n\nThe broader S&P 500 also dropped sharply by more than 1.2%. The index’s tech sector was by far the worst performing Friday, tumbling more than 3.5%.
\n\nAs trillion-dollar tech companies raise and spend hundreds of billions of dollars to build massive artificial intelligence data centers and develop AI models, investors have been on edge as they look for clear signs that all this spending is actually delivering returns.
\n\nOn Thursday, Amazon reported that its spending to build out AI had continued at a faster clip than expected last quarter, while growth in its core online shopping business had slowed.
\n\nThe last time Amazon told investors it was upping its AI spending budget, the market rewarded the decision by sending shares up more than 15%.
\n\nBut…
Original source: https://www.nbcnews.com/health