Major US stock indices closed lower on Thursday, with technology shares continuing to face headwinds amid mounting concerns over artificial intelligence spending. The selloff was broad-based, reflecting investor unease about the sustainability of AI-related capital expenditures and their impact on corporate profitability.
Earnings and Geopolitical Tensions Drive Market
Earnings season remained in full swing, with individual stock moves driven by quarterly results from companies across sectors. Financial and industrial names were in focus, including Cintas, Fastenal, ManpowerGroup, State Street, and Wells Fargo. Meanwhile, geopolitical risks persisted as tensions in the Middle East showed no signs of easing, adding to the cautious tone in the market.
AI Spending Worries Weigh on Tech
Technology stocks have been under particular pressure as investors question whether the massive investments in AI infrastructure will deliver expected returns. The uncertainty has led to increased volatility in the sector, with several high-profile tech names experiencing sharp declines. The broader market also faced headwinds from ongoing concerns about inflation and the Federal Reserve's monetary policy trajectory.