Tech Sell-Off Erases Nearly $1 Trillion from Nasdaq in a Week as AI Spending Fears Mount

A sharp sell-off in technology stocks accelerated Friday, wiping out nearly $1 trillion in value from the Nasdaq composite over the past week and roughly $2 trillion over the past month. The S&P 500 fell more than 1%, erasing its gains for October despite hitting an all-time high earlier in the month, while the Nasdaq dropped over 3%. The Dow Jones Industrial Average saw a smaller decline. The rout follows subpar earnings from leading tech companies and growing investor skepticism about whether the billions being poured into artificial intelligence can generate returns quickly enough. As big tech stocks falter, market participants are reassessing valuations in a sector that has driven much of the recent rally. The sell-off underscores the fragility of AI-driven optimism and signals that investors may demand clearer paths to profitability before continuing to bid up tech giants.