Amazon, Google and Microsoft Shares Fall 3% Amid AI Spending Concerns

This article first appeared on GuruFocus.

U.S. stocks opened lower Thursday, with the S&P 500 and Nasdaq hitting 2026 lows, according to a Thursday press release. The Dow fell about 1%, while the Nasdaq slipped nearly 1%.

Tech giants led the decline. Amazon (NASDAQ:AMZN) dropped more than 3%, Alphabet (NASDAQ:GOOGL) slid almost 3%, and Microsoft (MSFT) edged down nearly 3% amid rising concerns over industry spending.

Labor market reports added to the pressure. Challenger Job Cuts jumped to over 108,000 in January, more than tripling from the previous month. Initial jobless claims rose to 231,000, while continuing claims inched higher to 1.84 million. JOLTs data showed U.S. job openings at a new low in December, though quits exceeded expectations.

Despite broader weakness, some sectors held steady. The Russell 2000 declined only slightly, with about 55% of U.S. stocks trading lower. Volatility climbed, with the Cboe Volatility Index reaching two-month highs at 22.5.

Investors will watch Amazon, Linde (LIN), Shell (SHEL), and ConocoPhillips (COP) earnings later today. Analysts say Alphabet’s heavy AI investment and labor trends could influence tech sentiment in the near term.