Amazon shares sank around nine percent early Friday on worries about artificial intelligence spending while the Nasdaq bounced after three straight losing sessions.
Amazon shares were off 8.6 percent after falling even more at the open following the company’s announcement of plans to spend about $200 billion in 2026 as it builds up AI capacities.
But about 20 minutes into trading, major US indices were solidly positive.
The tech-centered Nasdaq Composite Index, which has seen the brunt of this week’s AI-related selloff, gained 1.3 percent to 22,824.17.
The Dow Jones Industrial Average rose 1.3 percent to 49,552.75, while the broad-based S&P 500 advanced 1.2 percent to 6,876.67.
FHN Financial’s Chris Low described this week’s dynamics as a “really a significant change because last year, the AI trade was lifting almost the entire tech sector and the energy sector.”
But markets this week have punished software companies, fearing that AI will make their products obsolete. There are also worries about whether huge AI capital spending will lead to a return.
“Today, traders feel like maybe the sell-off was overdone,” Low said.
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