Intel, Amazon Earnings Spark Tech Selloff

Tech stocks took a beating Friday after Amazon and Intel earnings disappointed investors. Amazon fell about 7% in premarket trading. Intel dropped about 26% on weaker-than-expected guidance, even as its data center and AI revenue jumped 78% to $7.3 billion. Nasdaq futures were headed for a $1 trillion drop at the bell, which is a lot to lose before the coffee cools. Bloomberg quotes Jai Malhi of Vanda Research saying investors have become 'capex vigilantes,' which is a fancy way of saying they've quit writing blank checks. Wall Street now wonders whether all that AI spending will ever pay back, and around here that's a dog that won't hunt. Oil rose on Iran-related reports.

“Tech earnings have proven a major hurdle with investors suddenly becoming capex vigilantes”Jai Malhi, senior equity strategist at Vanda Research, via Bloomberg