The Nasdaq Composite fell to a seven-week low after investors questioned how quickly the largest technology companies could generate returns from their expanding AI infrastructure spending plans. The risk-off sentiment also pushed Bitcoin below $63,000 amid broader pressure across equities and cryptocurrencies.
AI Investment Race Coincides With Market Pullback
The cautious sentiment was reflected across major equity and cryptocurrency markets. The weekly US100 chart showed the index extending its recent decline after failing to hold above the 30,000 level. The benchmark closed near 27,851.5 after breaking below the 28,187.3 support level, signaling weaker upward momentum.
The Nasdaq Composite also finished lower at 24,932.08, down by 43.74 points, or 0.18%, after early selling pushed the index from above 25,200 to an intraday low near 24,780.
Bitcoin followed the broader risk-off move. The cryptocurrency traded at $63,391.13, down by 2.96% over the past 24 hours. The trading volume reached $27.76 billion, while its market capitalization stood at approximately $1.27 trillion.
Tech Giants Expand AI Spending Despite Investor Concerns
Alphabet and Meta recently increased their 2026 capital expenditure outlooks, extending an already historic investment cycle. Together with Microsoft and Amazon, the four largest hyperscalers are now expected to spend about $730 billion on AI infrastructure in 2026, while Wall Street already anticipates another increase in 2027.
The spending will support demand for data centres, networking equipment, AI accelerators, custom silicon, and power infrastructure, benefiting suppliers such as Nvidia, Broadcom, Micron Technology, and Taiwan Semiconductor Manufacturing. However, investors remain focused on whether those record investments can generate returns quickly enough to justify the pace of spending.
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