AI Selloff Deepens Across U.S. Technology Stocks

U.S. equities extended their mixed performance on Thursday as investors sold AI-related stocks while established companies in traditional sectors showed greater resilience. The S&P 500 declined 0.5%, while the Nasdaq 100 dropped 1.5%, extending its losing streak to six declines in seven trading sessions.

The latest losses reflected growing skepticism about whether the enormous investments being made in artificial intelligence infrastructure will generate sufficient financial returns. Semiconductor manufacturers and companies supplying data-center equipment came under renewed pressure following the release of third-quarter sales figures from Anthropic.

The figures reportedly showed slower sales growth than earlier in the year and missed most estimates, adding to concerns about the commercial outlook for AI-related investments.

Semiconductor and Storage Companies Face Heavy Selling

The technology selloff spread across chipmakers and storage companies. Micron Technology, Intel, Advanced Micro Devices and Marvell Technology each lost more than 6%. Seagate and Western Digital suffered even steeper declines, falling approximately 9%.

These losses highlight the sensitivity of AI-linked companies to changing expectations about demand, capital expenditure and future profitability. Although investment in AI infrastructure has supported the technology sector, investors are increasingly scrutinizing whether spending levels can be justified by the revenue companies ultimately generate.

If doubts about returns persist, companies connected to semiconductor production, data-center construction and storage infrastructure could remain vulnerable to further volatility.

Rising Producer Inflation Adds to Financing Risks

Higher producer inflation reinforced expectations that the Federal Reserve could raise interest rates again this year, adding another source of pressure for companies financing large infrastructure projects with debt.

CoreWeave, an AI infrastructure operator that has taken on substantial borrowing to fund capital expenditure, fell 8%. Its bonds also declined sharply, indicating that concerns extended beyond equity valuations to the cost and perceived risk of corporate debt.

Higher interest rates can increase financing expenses and make future investments more costly. For companies that require continuous capital spending to expand computing capacity, these pressures can complicate the path toward sustainable returns.

The combination of inflation concerns and questions about AI profitability has therefore created a challenging environment for highly leveraged infrastructure businesses.

Dow Outperforms as Investors Favor Established Businesses

While technology shares declined, the Dow Jones Industrial Average rose 0.6%. Walmart gained 3%, and Eli Lilly advanced 2%, helping the index outperform the broader market.

The divergence suggests that investors were shifting some attention toward established businesses as concerns about speculative growth investments intensified. A rally in U.S. Treasury bonds also accompanied the rotation described in the source report.

However, the session’s mixed performance does not necessarily indicate a lasting change in market leadership. Further earnings results, inflation data and interest-rate expectations will help determine whether the preference for established companies continues.

U.S. Market Outlook Remains Sensitive to AI Spending

The US500 benchmark, tracked through a contract for difference, stood at 7,725 points on October 15, 2026, gaining 0.08% from the previous session. It had risen 2.30% over the preceding month and 16.54% over the previous year, despite recent pressure on technology stocks.

The index’s reported record high was 7,844.67 in October 2026.

Investors will be watching AI-related sales growth, capital expenditure plans, corporate borrowing costs and upcoming inflation readings. Evidence that AI investments are translating into sustainable revenue could help restore confidence, while persistent financing pressure and disappointing sales trends could prolong volatility across the technology sector.