Nasdaq-100 could lose $1 trillion after Amazon and Intel declines — TimesLIVE

In the United States, futures on the technology index Nasdaq-100 fell sharply ahead of the market open following news of Amazon’s major spending on artificial intelligence and Intel’s warning about cash outflows. If the losses had persisted, Amazon and Intel together could have lost about $300 billion in market value, while the Nasdaq-100 could have lost approximately $1 trillion, TimesLIVE reports.

AI spending worries investors

Amazon shares were down 6.5% in premarket trading. The company reported a significant cash outflow in the third quarter and signaled a further increase in capital expenditures next year. Investors are concerned about the rapid rise in spending on artificial intelligence infrastructure and the timeline for such investments to begin generating returns.

Several companies raised funds through the bond market to finance AI investments. This intensified concerns that higher borrowing costs could call the rationale for such spending into question.

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Intel decline and pressure on chipmakers

Intel shares fell by more than 25% after the chipmaker warned that the company would have a cash outflow this year. Intel linked this to the weak personal computer market, manufacturing bottlenecks, and significant spending on production expansion.

The broader semiconductor sector also came under pressure: Nvidia shares were down 3.2%, while AMD fell 8.3%. Shares of server manufacturers Dell and HP lost 11.8% and 9.5%, respectively. Alphabet fell 1% in premarket trading after a record sell-off the previous day, while Meta also reported a cash outflow in the quarter ending in September.

As of 8:15 U.S. time, Nasdaq-100 futures were down 2.6%, S&P 500 futures fell 1.12%, and Dow Jones futures declined 0.08%. At the same time, Chevron and Exxon Mobil shares rose after the companies reported quarterly profits that exceeded expectations.