Investors sold off major tech shares after SpaceX revealed a sixfold increase in Q2 capital expenditure to $18 billion.
U.S. equities retreated Wednesday as concerns over AI spending weighed on tech stocks. The Nasdaq fell sharply, led by declines in SpaceX, Google, and Microsoft, while the S&P 500 and Dow also erased early gains. SpaceX’s stock plunged 13% after reporting a $18 billion Q2 capital expenditure, up sixfold, with most funds directed toward AI infrastructure.
The pullback followed a record close for the Dow but reflected broader unease over whether big tech’s multibillion-dollar AI investments will deliver timely returns. AMD, Sandisk, and Western Digital also dropped, with the latter two extending losses in after-hours trading amid weak forward guidance expectations.
Semiconductor stocks underperformed, adding to the sector’s volatility as investors demand clearer revenue growth signals from AI-driven spending.