The sell-off for tech stocks on Wall Street got even worse on worries that the frenzy around AI sent prices too high. The S&P 500 dropped 1.8% Friday for its worst day since June. The Nasdaq composite fell 2.9%, while the Dow Jones Industrial Average dropped 1.1%. Intel plunged to its biggest loss since 1974 after giving a profit forecast that fell below analysts’ expectations, while Amazon’s latest profit report raised more worries about how much companies are spending on their AI Investments. Treasury yields sank as investors searched for safer things to own, even though oil prices rose.

FRANKFURT, Germany (AP) — European Central Bank President Christine Lagarde will resign nine months before the end of her term, a move that op…

A historic drop for Alphabet's stock dragged the U.S. stock market lower. The S&P 500 fell 0.3% Thursday for its first loss in four days, even though the wide majority of stocks rose within the index and across Wall Street. The Nasdaq composite tumbled 1.4%, and the Dow Jones Industrial Average fell 0.3%. Google's parent company was the main reason for the losses following its worst drop on record. Alphabet reported weaker growth for the summer than analysts expected, and its report underscored worries about whether huge investments in AI will pay off. Treasury yields fell in the bond market.

The U.S. economy posted strong growth in the July-September quarter yet inflation remained stubbornly high last month, government reports showed Thursday, painting a mixed picture less than a week before midterm elections in which the uncomfortably high cost of living has become a central issue. Strong consumer spending and soaring investment in artificial intelligence infrastructure were the key drivers of growth in the third quarter. Whenever unemployment is low, like now, consumers often spend at a healthy clip, and wealthier consumers are increasingly spending the fruits of their stock market gains. Yet economists worry that persistently high prices are eroding Americans’ ability to keep spending.

The U.S. economy grew at a healthy 3.4% annual pace from July through September, accelerating from the second quarter on strong consumer spending and investment in artificial intelligence. The expansion in third-quarter gross domestic product – the nation’s output of goods and services – was faster than the 2.2% growth registered from April through June, the Commerce Department said Thursday. Consumer spending rose at a brisk 3.8% clip in the third quarter, and business investment was up sharply, reflecting the AI boom.