Nasdaq Takes a Hit Amid Big Tech Losses and Economic Data Release

Nasdaq closed lower as technology shares dropped and economic data increased concerns over Federal Reserve actions. The S&P remained flat and the Dow rose slightly. Investors were spooked by AI spending concerns despite positive signals from Micron. Inflation increased, hinting at potential interest rate hikes.

On Thursday, the Nasdaq faced a downturn as technology stocks suffered losses, contrasted by the S&P's near-static close and a slight uptick in the Dow, following the release of new economic data.

Early gains in tech shares dwindled as investor anxiety mounted over AI-related spending and who would bear the expenses, overpowering encouraging signals on AI demand from companies like Micron and Qualcomm. Apple shares dipped 6.1%, and major players such as Nvidia, Microsoft, and Alphabet also saw declines.

Inflation surged beyond 4.0% for the first time in three years due to rising energy costs, prompting traders to anticipate a Fed rate hike. The GDP showed growth above previous estimates, though joblessness claims presented unexpected drops, adding to the market's mixed reactions.