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Recent declines in tech stocks suggest a potential loss of investor confidence in artificial intelligence. The Nasdaq Composite Index experienced a 3% drop, marking its worst week since April when Trump announced his tariff plan. Companies like Palantir, Oracle, and Nvidia saw significant stock price declines, despite their strong performance earlier in the year. Meta and Microsoft, despite ongoing AI investments, also saw market downturns. Analysts suggest that stretched valuations and high expectations are affecting investor confidence.
Key facts
- The Nasdaq Composite Index fell 3%, its worst week since April.
- Tech companies like Palant, Oracle, and Nvidia experienced significant stock price declines.
- Meta and Microsoft, despite ongoing AI investments, also saw market downturns.
- Analysts suggest that stretched valuations and high expectations are affecting investor confidence.
- The S&P 500 and Dow Jones fared better, with smaller declines compared to the Nasdaq.
