US stocks fall as AI spending doubts linger before Fed meeting

US stocks fell Friday, with the Dow dropping 1.25% to 52,209.16, as persistent doubts over AI-related spending weighed on market sentiment ahead of next week's Federal Reserve meeting. The S&P 500 declined 0.52% to 7,623.86, while the Nasdaq slipped 0.21% to 25,955.34. Investors are questioning whether massive data center investments can continue at previous pace, with major AI companies Alphabet, Microsoft, and Amazon reporting earnings next week. Telecom stocks fell after SpaceX sought cell sites for a fourth wireless carrier, while energy hit a record high as oil prices climbed on Middle East supply concerns. The Fed is expected to hold rates steady Wednesday, with midterm elections also in focus.