NASDAQ DIVES MORE THAN 750 POINTS AS INVESTORS WORRY MASSIVE AI SPENDING WONT PAY OFF

What happened: Stocks fell sharply on Thursday on concerns about massive AI investments and high oil prices. The Nasdaq Composite tumbled 751 points, or 2.8%, shortly before the close. Key numbers: Nasdaq down 751 points (2.8%); S&P 500 down 1.4%; Dow down 0.1%; Meta down 7.4%; Tesla down 2.1%; Why it matters: Analysts say investors worry AI companies are taking on enormous debt for data center spending and may not generate the profits expected. Adam Crisafulli of Vital Knowledge noted capex is outpacing operating cash flow, and tightening credit could hinder financing of the AI buildout. Coverage: 3 outlets in 24h

Stocks fell sharply on Thursday on concerns about massive AI investments and high oil prices. The Nasdaq Composite tumbled 751 points, or 2.8%, shortly before the close.

Analysts say investors worry AI companies are taking on enormous debt for data center spending and may not generate the profits expected. Adam Crisafulli of Vital Knowledge noted capex is outpacing operating cash flow, and tightening credit could hinder financing of the AI buildout.