Tech Stocks Tumble: AI Concerns Weigh Heavy

Major U.S. stock indexes fell amid concerns over AI investments, with Oracle, Amazon, Nvidia, and Broadcom shares declining. Google and Meta are to challenge Nvidia's software dominance, impacting stock performance. Rising energy stocks contrasted with tech declines, while upcoming inflation data could influence market trajectory.

Wall Street ended the Wednesday trading session on a downbeat note, with the S&P 500 and tech-centric Nasdaq reaching three-week lows due to growing concerns over artificial intelligence investments pressuring major technology stocks. Oracle's shares dipped following a report highlighting that Blue Owl Capital, its biggest data center partner, will not support a $10 billion deal for a new facility.

Nvidia and Broadcom also saw declines, compounding struggles faced by the broader chips index. Amazon's slight drop coincided with reports of its discussions to invest approximately $10 billion in ChatGPT creator OpenAI. Such large-scale development plans have sparked fears about tech firms accruing more debt, dampening risk appetites.

In contrast, the energy sector experienced gains as crude prices climbed. U.S. President Donald Trump's directive to halt sanctioned oil tankers linked to Venezuela boosted stocks like ConocoPhillips and Occidental Petroleum. Investors also focused on upcoming consumer inflation data. Meanwhile, Google's alliance with Meta seeks to neutralize Nvidia's software market edge, amid market movers ponder potential implications.