Nasdaq 100 heads for $2 trillion October loss as AI spending worries mount

The Nasdaq 100 is on track to lose over $2 trillion in market value during October, a decline of more than 5.8%, as investor concerns grow over whether massive artificial intelligence spending by Big Tech can generate returns quickly enough. The selloff was triggered by disappointing earnings from major companies, including Alphabet's record one-day drop after weak search advertising results and Meta's plans for a $97.5 billion fund raise, which raised fears about shareholder dilution and growing reliance on debt. Microsoft and SpaceX were exceptions, showing early signs that AI investments are starting to pay off. The broader concern extends to credit markets, as rising borrowing costs and slower AI returns could squeeze companies previously seen as insulated. Morgan Stanley forecasts AI infrastructure capital spending will surpass $1 trillion next year, with J.P. Morgan projecting global AI capex to reach $5.5 trillion by 2030.