Nasdaq Dips as Big Tech Tumbles Amid Economic Turbulence

A tumultuous trading day saw the Nasdaq decline amid falling Big Tech stocks, offset by gains in other sectors. Concerns over hyperscaler spending on AI and the Federal Reserve's stance influenced market movement. Despite tech losses, select semiconductor stocks, buoyed by strong earnings, boosted sector indices.

The Nasdaq fluctuated on Thursday, ultimately closing lower as losses in major Big Tech stocks overshadowed the broader market's mixed results. A wave-like trade affected the S&P 500, which saw a slight afternoon rise, and drove the Dow upward as investors processed fresh economic data out of the U.S.

Technology shares, initially on an upward trajectory, reversed to close lower, dragging the Nasdaq down as investors grew concerned over hyperscaler spending on artificial intelligence and the potential financial repercussions. These fears overshadowed optimistic AI demand projections from companies like Micron and Qualcomm.

Amid apprehensions about possible Federal Reserve actions and debt-funded spending patterns, the Nasdaq eyed its worst monthly performance since March 2025. Meanwhile, key indices like the Philadelphia SE Semiconductor index broke records, despite an uptick in inflation pressures and declining joblessness.