Nasdaq heads for correction as AI spending worries hit tech stocks

The Nasdaq fell more than 10% from its record close on Thursday, on track to confirm a correction as worries over massive AI spending and scrutiny of data-center expansion rattled tech stocks. Thursday's slide erased the previous session's gains after Democrats swept both houses of Congress, with investors weighing the prospect of greater scrutiny of further AI infrastructure buildout. A 10% decline from a record closing high is widely considered a correction, marking the Nasdaq's second this year. Sentiment toward AI-linked stocks has deteriorated recently, with the Nasdaq shedding over $2.5 trillion in market value in October. Big tech companies are tapping debt markets to finance data-center and chip investments, while investors question how quickly those spending plans will translate into profits amid elevated borrowing costs.