Market Volatility: Tech Stocks Plunge Amid AI Investment Concerns

The S&P 500 and Nasdaq suffered losses after Alphabet's cloud revenue disappointed investors. AI stocks also showed instability, influenced by rising alternatives. Meanwhile, U.S. services activity saw unexpected slowdowns. FMC's revenue forecast dipped, and Uber's Q1 bookings were below projections, hitting market sentiments.

The stock markets saw a tumultuous day with the S&P 500 and Nasdaq slipping, led downwards by Alphabet's disappointing cloud revenue, which fell short of investor expectations. The tech giant's $75 billion investment into artificial intelligence further heightened market concerns.

In a turbulent week for AI stocks, Nvidia rebounded by 3.8% despite recent challenges, whereas Advanced Micro Devices witnessed a significant 8.9% dip in expectations due to forecasted drops in data center sales. Market uncertainties also burgeoned with Apple's potential antitrust issues in China and significant revenue forecasts from FMC Corp and Uber.

The broader economy reflected mixed signals with unexpected slowdowns in U.S. services sector activity, though private payrolls exceeded expectations. Investors remain watchful of upcoming nonfarm payroll data and geopolitical developments involving U.S.-China trade tensions.

(With inputs from agencies.)