On October 23, US tech stocks experienced a notable downturn as investors voiced apprehensions regarding the unsustainable hike in artificial intelligence sector expenditures. The Nasdaq Composite Index plummeted by 2.6% on Thursday, registering its steepest single-day decline since June. In contrast, the Dow Jones Industrial Average, dominated by blue-chip companies, inched up by a mere 0.02%. Market anxieties over the hefty investments made by tech firms in AI triggered a slump in several key AI-linked stocks. Meta's share price tumbled by 7% after the company revealed it would face substantial additional costs. Despite a significant revenue surge, its profits fell short of Wall Street's projections. Investor and analyst Navillier remarked that the market is indiscriminately offloading stocks, even high-caliber assets are being jettisoned.

Remarks from NVIDIA's CEO further stoked market concerns about AI expenditures. He noted that AI lacks adequate capital to fuel the expansion of 'new cloud service providers,' which supply digital infrastructure for major AI cloud computing enterprises like Meta and Amazon. Consequently, shares of SpaceX, NVIDIA, and CoreWeave all took a hit, with the Philadelphia Semiconductor Index nose-diving by 6.7%. Amid the persistent upheaval in the AI sector this week, US investors have pivoted towards the bond market for refuge, steering clear of risky assets such as tech stocks. The influx of capital into the bond market has precipitated a notable drop in US Treasury yields.