Tech Stocks Tumble Amid AI Investment Skepticism

U.S. stock index futures experienced a modest rise on Friday following significant losses in the tech sector this week. The increase comes as major companies, notably Amazon, grapple with market reactions to their AI infrastructure spending strategies.

This week saw Amazon shares fall by 7.2% in premarket trading, primarily due to the company's announcement of a more than 50% increase in capital expenditures aimed at bolstering AI capabilities. This expenditure surge aligns with similar movements by other tech giants, raising investor concerns about the sustainability of such investments.

With rising skepticism surrounding AI spending, the spotlight remains on big tech companies, particularly Nvidia, which could benefit from increased AI spending. Meanwhile, the tech-heavy Nasdaq index ended at a two-month low, contributing to its most significant weekly decline in over ten months, as the industry experiences a broader reassessment of risk.