Tech giants Microsoft, Meta Platforms, Amazon, and Alphabet have contributed over a third of all S&P 500 capital expenditures over the past year, stirring unease among investors. This mounting skepticism catalyzed severe individual equity selloffs, with companies like Sandisk sliding 13 percent alongside broader market declines. Weakness quickly spilled over into non-tech assets, dragging down major financial firms and digital currencies while commodities saw mixed swings.
Key points
Investor anxiety is escalating over tech hyperscalers using external financing to support…: Investor anxiety is escalating over tech hyperscalers using external financing to support aggressive capital expenditures.
Selling momentum spread into cryptocurrency and precious metals, with Bitcoin falling 3 p…: Selling momentum spread into cryptocurrency and precious metals, with Bitcoin falling 3 percent and silver tumbling 6 percent.
Safe-haven demand shifted capital toward Treasuries as equity markets suffered broad decl…: Safe-haven demand shifted capital toward Treasuries as equity markets suffered broad declines across technology and banking sectors.
Sources checked by our analysis pipeline: 1
NEW YORK, Oct 30 : Monday will ring in a brand-new trading month, a prospect that appeals to many after a doozy of a last session in October.
A fresh test of this year’s technology rally sent the Nasdaq composite on Friday to its biggest decline since June. Chipmaker Intel and social media firm Reddit fell 29 per cent and Sandisk, a chipmaker that has been one of the great beneficiaries of the AI capital-spending boom, dropped 13 per cent.
Friday’s selloff came after a bruising for the big tech firms at the center of the AI buildout, led by Microsoft, Meta Platforms, Amazon and Google parent Alphabet. Their shares dropped 1 per cent to 2 per cent on Friday following significant declines earlier in the week.
The four so-called hyperscalers have been collectively responsible for more than a third of all the capital spending undertaken by the current constituents of the S&P 500 over the past 12 months, Capital Economics said, adding that their share seems likely to rise to an even higher level – a prospect that investors…
Trading on the domestic equity market concluded with marginal downward movement across the main exchange. Investors saw the country's primary benchmark retreat slightly by the final bell as selling pressure edged out gains. The nominal downturn left shares essentially flat after full-session activity.
Investors traditionally rely on safe-haven assets during periods of geopolitical instability, yet bullion failed to attract buying interest despite heightened concerns regarding potential Middle East attacks. This unexpected downward movement unfolded immediately following the U.S. midterm elections held on Tuesday. The retreat pushes the asset to its weakest valuation recorded over the past twelve months.