The tech stocks continued to rattle the US markets for the third consecutive session, with NASDAQ closing nearly 1.4% lower on Thursday.
The S&P500 and Dow Jones also fell 1.2% each on Thursday as investors turned cautious over the broader economic sentiment of the country.
Additionally, the macroeconomic data for employment also disappointed the markets. The US Job openings fell to their lowest level since 2020, and the jobless claims rose more than expected as employers announced the largest job cuts since 2009.
Amazon results
The largest online retailer and web services platform posted a mixed set of earnings on Thursday. The company’s revenue stood at $213 billion, slightly higher than the consensus estimates of $211 billion for the quarter. Additionally, the earnings per share for the company jumped from $1.93 per share to 1.95 per share, but slightly lower than the consensus street estimates of $1.97 per share. While the AWS segment posted a better-than-expected outcome at $35.6 billion
The shares dropped nearly 10% in the extended trading session after market hours as the company’s announcement of a $200 billion investment in AI and related expenditure soured investor sentiments.
The trend remains the same across megacap companies, which are pushing massive spending on AI infrastructure but receiving muted, subdued responses from investors. The disappointment with heavy spending on AI infrastructure is primarily due to its low investment yields.