Nasdaq 100 set to lose $2 trillion in October as AI spending fears grow

The Nasdaq 100 index is projected to lose over $2 trillion in market capitalization during October, driven by investor concerns that massive spending on artificial intelligence may not generate sufficiently rapid returns. This loss would exceed the total market value of SpaceX. The index has fallen more than 5.8% this month as major tech companies like Meta, Alphabet, and Amazon raised their capital expenditure forecasts for AI infrastructure. Rising borrowing costs have made debt-financed investments more expensive, while Meta's plans for a record $97.5 billion fundraising have raised shareholder dilution concerns. Microsoft and SpaceX were exceptions with strong results, and JPMorgan's John Bilton noted demand for data remains insatiable. Morgan Stanley projects global AI infrastructure spending will exceed $1 trillion next year, with J.P. Morgan forecasting $5.5 trillion in cumulative AI investment by 2030.