Wall Street Slumps Amid AI Cost Warnings from Tech Giants

Wall Street's major indexes opened lower on Thursday due to warnings from Meta Platforms and Microsoft about rising costs related to AI, which affected investor enthusiasm toward megacap stocks. The Dow fell 185.2 points, the S&P 500 lost 38.3 points, and the Nasdaq dropped 180.6 points at the opening.

Wall Street experienced a downturn at the opening on Thursday as investor excitement about megacap stocks waned. This shift followed warnings from Meta Platforms and Microsoft about escalating artificial intelligence costs impacting their prospects.

Early trading saw the Dow Jones Industrial Average fall by 185.2 points, reflecting a 0.44% decline, positioning the index at 41,956.34. Similarly, the S&P 500 witnessed a drop of 38.3 points, marking a 0.66% decrease, landing at 5,775.34.

The Nasdaq Composite was not spared, suffering a loss of 180.6 points or 0.97%, to reach 18,427.31 as the opening bell rang. These declines highlight investor caution amid rising operational expenses in tech giants focusing on AI advancements.

(With inputs from agencies.)