Nasdaq 100 falls over 5.8% in October on AI spending fears
In short
The Nasdaq 100 has dropped more than 5.8% in October as investors worry about big spending on artificial intelligence. The report says Meta, Alphabet, and Microsoft are all raising capital spending for AI infrastructure.
This matters because higher costs and higher borrowing rates can pressure tech stocks further. The report does not say how much more the index could fall, even though the headline mentions a possible $2 trillion wipeout.
What the reporting says
The Nasdaq 100 has fallen more than 5.8% in October as investor concern grows over heavy artificial intelligence spending, according to an Economic Times Markets summary. The summary says major technology firms including Meta, Alphabet and Microsoft are raising capital spending for AI infrastructure while borrowing costs are also rising. The immediate market risk is a larger valuation hit, but the source gives no official forecast for the index beyond analysts’ spending concerns.
Why it matters
The Nasdaq 100’s October drop is linked in the summary to rising concern over AI spending and higher borrowing costs. Meta, Alphabet, and Microsoft are cited as increasing capital outlays for AI infrastructure, which has amplified investor caution. The source does not confirm the headline’s $2 trillion figure or provide a time frame beyond October, so the scale of any further decline is uncertain.