STEEP BILL FOR AI BUILDOUT PUNISHES META , OTHER TECH FAVORITES

What happened: Investors sold Meta Platforms and other AI-linked shares after Meta said it would issue a new class of shares to raise funds for AI spending. Key numbers: Meta fell 8%, its largest drop since July. SpaceX declined 9%, Nvidia dropped 4%, and the Nasdaq Composite was on track for its largest decline in four months. Lam Research plunged 10%. Why it matters: The pullback focuses on rising costs of AI spending whose payoffs remain uncertain, with Wall Street expecting higher interest rates to push firms like Meta to sell billions in stock, pressuring share prices.

Investors sold Meta Platforms and other AI-linked shares after Meta said it would issue a new class of shares to raise funds for AI spending.

The pullback focuses on rising costs of AI spending whose payoffs remain uncertain, with Wall Street expecting higher interest rates to push firms like Meta to sell billions in stock, pressuring share prices.