AI Promises Fail to Impress as Tech Giants Earnings Slow

Big technology companies` earnings growth is slowing, and investors are no longer satisfied with promises of future artificial intelligence (AI) profits. They want to see actual results now. Despite significant investments in AI, companies like Microsoft and Amazon saw their stock prices decline after reporting earnings, as investors doubt the immediate profitability of these ventures. This skepticism has fueled a shift away from large tech companies towards smaller, riskier investments. Combined with economic signals like a potential interest rate cut and a disappointing jobs report, the tech-heavy Nasdaq 100 index experienced a significant downturn. This market activity suggests growing concerns about a weakening economy and the need for rapid intervention, worrying investors.