Is Wall Street losing faith in AI?

1 week ago 10

Skip to navigation Skip to main contented Skip to close file

Anthony Ha

Sat, November 8, 2025 astatine 2:53 PM CST 1 min read

young antheral lasting successful beforehand of the projection reflected banal market

A unsmooth week for tech stocks mightiness awesome a nonaccomplishment of capitalist assurance successful artificial intelligence.

The Wall Street Journal reports that the Nasdaq Composite Index was down 3% — making this its worst week since President Donald Trump announced his sweeping tariff program successful April.

Tech companies that person different performed good this twelvemonth were among those hardest hit, with Palantir’s banal terms falling 11% this week, Oracle declining by 9%, and Nvidia losing 7%. These drops besides travel aft net reports successful which Meta and Microsoft indicated that they program to proceed spending heavy connected AI (both companies were down astir 4%).

“Valuations are stretched,” Cresset Capital’s Jack Ablin told the WSJ. “Just the slightest spot of atrocious quality gets exaggerated … and bully quality is conscionable not capable to determination the needle due to the fact that expectations are already beauteous high.”

Economic factors similar the ongoing authorities shutdown, declining user sentiment, and wide layoffs are besides apt dragging down the banal market. But the little tech-heavy S&P 500 and Dow Jones Industrial Average didn’t bash rather arsenic badly, with declines of 1.6% and 1.2%, respectively.