US Stocks Fall as Investors Worry About Financing Heavy AI Spending

The Nasdaq Composite posted a slim loss a day after suffering its biggest one-day drop since June, as concerns flared over financing costs to support heavy AI investment spending.

Next week, about one-third of S&P 500 companies report quarterly results, including Alphabet, Microsoft and Amazon, three AI hyperscalers.

There is still fallout from the questioning of the AI trade, said Kristina Hooper, chief market strategist at Man Group, with potential for less investment in AI data centre build-out next year than projected.