US tech stocks slide 2.6% as AI spending worries hit Nasdaq

US tech stocks fell sharply Thursday, with the Nasdaq Composite dropping 2.6 percent, its steepest decline since June, as investor concerns grew over the sustainability of massive corporate spending on artificial intelligence. The broader S&P 500 slid 1.21 percent. Most of the "Magnificent 7" tech giants suffered losses, led by Meta's nearly 7 percent drop after it raised its 2026 capital spending forecast to $135-145 billion while missing profit expectations. Amazon fell 4.6 percent, Nvidia 4.4 percent, and Intel and AMD each about 8 percent. Rising oil prices above $114 a barrel added to the downbeat mood. Asian markets opened lower Friday. Analysts attributed the sell-off largely to investor sentiment rather than fundamentals, amid ongoing debate over whether AI investment levels, forecast to reach $2.7 trillion in 2026, constitute a bubble.