Tech Stocks Drop on AI Costs While Automakers Rebound
Big Tech shares dropped sharply after disappointing earnings and heavy spending on artificial intelligence initiatives. Meanwhile, defensive sectors and Michigan automakers posted solid weekly gains amid shifting market conditions.
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Alphabet shares plunged nearly 13% after missing revenue estimates and burning $9 billion in cash, triggering a broader tech sell-off. The Nasdaq 100 dropped 2.6% by Friday midday, heading for a third consecutive weekly loss. Investors are rapidly rotating out of high-valuation technology equities and into defensive sectors and Treasuries as capital expenditure pressures mount.
