Nasdaq Tumbles 700 Points as Wall Street Scrutinizes Hyperscaler AI Capex Returns

Tech Rout Hits Major US Benchmarks

Wall Street wrapped up a volatile trading week as technology shares led a broad pullback. The Nasdaq Composite tumbled over 700 points (~2.9%–3.5%), the S&P 500 slid 1.8%, and the Dow Jones Industrial Average shed 572 points.

The AI Capex Debate Intensifies

• Hyperscaler Cash Burn: Investors are demanding clearer revenue monetization timelines as cloud giants pour hundreds of billions into AI servers and data-center power infrastructure.
• Valuation Reset: High-multiple semiconductor and software names faced rapid multiple compression.

Defensive Rotation

While cap-weighted indices dropped, healthcare and consumer staples saw defensive inflows as institutions hedged tech beta.

What Traders Are Watching

Watch whether the S&P 500 defends its 50-day moving average ahead of upcoming payroll and inflation releases.