Tech stocks plunged Friday, erasing more than $1 trillion in value. The Nasdaq 100 index fell 3.4% in afternoon trading, its worst one-day drop since mid-June.
\n\nThe sell-off pushed the Nasdaq 100 close to what is known as “correction territory,” which is a decline of 10% or more from an index’s last record high.
\n\nThe broader S&P 500 also sharply dropped 1.8%. The S&P’s tech sector was by far the worst performing of the day, tumbling by more than 4.2%.
\n\nAs trillion-dollar tech companies spend hundreds of billions of dollars to build out artificial intelligence data centers, investors are looking for clearer signs that all that spending is actually delivering returns.
\n\nThese questions underpinned one of the day’s worst-performing stocks, Intel, which plunged 29% in its worst-ever single-day drop, according to data dating back to the 1980s.
\n\nSeveral of Intel’s large peers followed it lower. SanDisk plunged 13%; chipmakers AMD, ARM Holdings, Qualcomm and Marvell all fell around 10%.
\n\nThe seeds of Friday’s massive losses were sown Thursday, however, when Amazon and Intel reported quarterly earnings that failed to reassure investors and analysts.
\n\nShares of Amazon declined by as much as 10% in post-market trading Thursday, before recovering throughout the…
Original source: https://www.nbcnews.com/