US tech stocks tumble as investors fret over AI spending

Tech-heavy Nasdaq falls 2.6 percent as debate rages over whether AI is a bubble.Published On 23 Oct 202623 Oct 2026US tech stocks have dropped sharply amid market jitters over the sustainability of companies’ enormous capital investments in AI.The Nasdaq Composite, which is dominated by tech firms linked to the AI boom, fell 2.6 percent on Thursday, its steepest fall since the index tumbled 4.2 percent on June 5.Recommended Stories list of 4 itemslist 1 of 4US-sanctioned ICC wins Sakharov Prize, EU’s top human rights awardlist 2 of 4Hundreds of Ethiopians cross into Kenya to flee regional fightinglist 3 of 4Almost all shallow-water coral reefs now face extinction risk, study warnslist 4 of 4UK Conservative Party leader responds to Al Jazeera investigationend of listThe broader S&P 500 slid 1.21 percent, the benchmark’s biggest drop since a 1.52 percent decline on July 29.Apart from Apple, each of the “Magnificent 7”, which make up more than one-third of the overall market, saw substantial losses.Meta dropped nearly 7 percent after it raised its projected capital spending for this year to $135bn to $145bn in its latest earnings report, even as the Facebook parent company’s net p...