S&P 500 Dips as Tech Sell-Off Accelerates on AI Investment Doubts

The S&P 500 closed lower on Thursday and Friday, driven by a broad sell-off in technology stocks. Market participants are increasingly skeptical that the heavy spending on artificial intelligence can be justified as competition heats up and service revenues decline.

This rotation marks a shift away from the tech sector, which had led much of the recent rally. The move underscores growing unease about valuations in AI-related names and the near-term payoff of capital expenditures in the space.

Investors are now rotating into other sectors, though the broader index remains under pressure as tech-heavy weightings drag on performance.