Stocks Turn Lower on AI Spending Concerns

The S&P 500 Index ($SPX) (SPY) today is down by -0.15%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.24%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.26%.  December E-mini S&P futures (ESZ25) are down -0.18%, and December E-mini Nasdaq futures (NQZ25) are down -0.30%.

Stock indexes erased early gains today and turned lower, with the S&P 500 falling to a 2-week low and the Nasdaq 100 sliding to a 2.5-week low.  Stocks extended last Friday’s losses today on concerns over artificial intelligence spending.  Broadcom is down more than -3%, and Oracle is down more than -2% to lead AI-infrastructure stocks lower as last week’s disappointing outlooks from Oracle and Broadcom have prompted some investors to rotate out of the tech sector amid lofty valuations and uncertainty over whether vast spending on AI infrastructure will ultimately pay off.  Also, energy stocks are falling after crude prices dropped to a 1.75-month low, and cryptocurrency-exposed stocks are sliding with Bitcoin down more than -4% to a 2-week low.