Nasdaq Drops Amid Concerns Over Tech Giants' AI Spending Plans

The Nasdaq Composite fell to a seven-week low due to investors' concerns over how quickly tech giants can generate returns from their expanding AI infrastructure spending plans.

The cautious sentiment was reflected across major equity and cryptocurrency markets, with Bitcoin trading at $63,391.13, down by 2.96% over the past 24 hours.

Tech giants Alphabet and Meta recently increased their 2026 capital expenditure outlooks, extending an already historic investment cycle. Together with Microsoft and Amazon, the four largest hyperscalers are expected to spend about $730 billion on AI infrastructure in 2026, with Wall Street anticipating another increase in 2027.