Shares in technology companies dropped sharply Thursday, compounding recent declines that have sparked concerns about the durability of the artificial intelligence boom that has driven much of recent U.S.economic growth.
The tech-focused Nasdaq 100 index dropped 5% in mid-morning trading, to its lowest level in five months.The broader Nasdaq Composite, which tracks more than just tech stocks, also entered “correction” on Thursday, which is when a stock or index declines at least 10%.Tech stocks have surged in recent years as excitement about artificial intelligence has fueled billions of dollars in investments in, and by, the companies that make chips and infrastructure necessary for its development and operation.Since Election Day 2024, the Nasdaq has surged almost 40%.But questions about whether AI will enable the kind of productivity necessary to generate returns on those investments have grown louder in recent months.Also contributing to losses were the commanding Democratic victories across the country in Tuesday’s midterm elections.
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