SEMICONDUCTOR INDEX DROPS 6.7 % AS NASDAQ SLIDES ON AI SPENDING DOUBTS

What happened: U.S. tech shares fell Thursday, Oct. 22, as investors questioned the payoff from heavy AI spending, dragging the PHLX Semiconductor Index down 6.7% and the Nasdaq Composite down 2.6%. Key numbers: PHLX Semiconductor Index -6.7% to 10,731.98. Nasdaq Composite -2.6% to 26,008.86. Why it matters: Reuters said the semiconductor index had not posted a steeper daily percentage fall since June 23. Edward Jones strategist Angelo Kourkafas said investors were weighing AI infrastructure costs against uncertainty over when those investments might generate returns.

U.S. tech shares fell Thursday, Oct. 22, as investors questioned the payoff from heavy AI spending, dragging the PHLX Semiconductor Index down 6.7% and the Nasdaq Composite down 2.6%.

Reuters said the semiconductor index had not posted a steeper daily percentage fall since June 23. Edward Jones strategist Angelo Kourkafas said investors were weighing AI infrastructure costs against uncertainty over when those investments might generate returns.