Tech stocks see steepest three-week slump in two years, led by plunge in Amazon and Intel

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With quarterly earnings largely in the rearview mirror, Wall Street is troubled by what it's seeing out of Silicon Valley.

The Nasdaq Composite fell 3.4% this week, bringing its three-week drop to 8.8%, marking the worst stretch of that length since 2022.Amazon, Intel, Microsoft and Nvidia have seen some of the steepest declines.With quarterly earnings from tech's mega-cap companies largely in the rearview mirror, one thing is clear: Wall Street is nervous.3.4% this week, bringing its three-week slide to 8.8%.

But the past earnings season has been disappointing, with some companies pointing to weaker-than-expected growth and others raising concern that the AI infrastructure buildout may hit some snags.slowed much more than expected during July, while unemployment ticked higher, a day after economic data showed an unexpected jump in filings for unemployment benefits and a weakening of the manufacturing sector.

"The ways that it's improving recommendations and helping people find better content, as well as making the advertising experiences more effective, I think there's a lot of upside there," Zuckerberg said on the earnings call last month. "Those are already products that are at scale. The AI work that we're doing is going to improve that."The one mega-cap tech company that's yet to release results is Nvidia, which has been the biggest winner in the AI boom.

 

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