Wall Street Woes: AI Investments and Disappointing Earnings Forecasts Rattle Markets
Major indexes on Wall Street fell as disappointing financial forecasts from Alphabet, AMD, and other corporations undermined investor confidence. Alphabet's AI investments and slipping revenue, alongside AMD's expected revenue dip, contributed to market anxiety. The overall market sentiment was further dampened by significant revenue forecast cuts from industry players.

Wall Street's key indexes took a hit Wednesday following underwhelming financial projections from major industry players Alphabet and AMD. The tech giants' announcements cast doubt on the anticipated returns from significant investments in artificial intelligence, shaking investor confidence.
Alphabet, Google's parent company, saw its shares plummet by 8.3% after reporting lower-than-expected cloud revenue growth and allocating $75 billion for its AI ventures. Similarly, Advanced Micro Devices experienced a 9.9% plunge after its CEO forecast a 7% decrease in data center sales, a critical segment linked to their AI-related revenues.
In the broader market, Uber's shares declined by 6.9% due to Q1 bookings predictions falling short of estimates, while Apple's shares dropped amid potential antitrust probes from Chinese regulators. Financial experts predict a possible rate cut by the Federal Reserve amidst economic uncertainties linked to trade policies and tariffs.
(With inputs from agencies.)