NEW YORK — Nasdaq futures tumbled nearly 800 points, or 2.7%, before the opening bell Friday after disappointing earnings from Alphabet, Amazon and Intel renewed doubts about artificial intelligence spending, CBS News reported.
Intel shares plunged more than 26% in premarket trading. Alphabet continued to wobble after sliding more than 12% Thursday, its worst day since the company went public as Google in 2004.
S&P 500 futures were down 1.1% and Dow futures were down 0.1%.
“This has been one of the worst tech earnings seasons in memory, with underwhelming results from a slew of very prominent companies,” Adam Crisafulli of Vital Knowledge said in a research note.
Investors are worried that massive investments in AI will not pay off as expected and about the debt companies are taking on to build data centers.
Earlier this week, UBS’s Ulrike Hoffmann-Burchardi advised clients to “diversify beyond AI.” Tech stocks make up a large share of many Arizonans’ 401(k) and retirement funds.
Sources: CBS News. Thee Arizona Times uses AI-assisted reporting reviewed against the sources listed.
Photo: Balon Greyjoy / CC0 via Wikimedia Commons.
