Meta Platforms Inc. is under the microscope as S&P Global Ratings lifts preliminary downgrade flags—citing a $750 billion AI expenditure that strains its balance sheet. The move follows a wave of AI‑related spending across advertising, consumer and retail giants, which together are expected to hit $750 billion this year.
The impact rippled across the broader market, with the Nasdaq 100 sliding 3.5% and briefly touching a technical correction zone. The S&P 500 also slipped 1.8%, slipping below its 100‑day moving average, a breach that sent risk‑averse traders scrambling.
Meanwhile, Intel Corp. delivered its steepest share decline in over four decades, a sign that even stalwarts are rattled by the AI narrative. Apple Inc., however, steadied its footing, regaining its spot as the world’s most valuable company by overtaking Nvidia, a move that sent some tech shares higher.
Crypto markets felt the shock of a Binance hack, reigniting security concerns and dragging down risk appetite. Oil prices rose, fueling speculation of renewed US‑Iran tensions, which further dampened market sentiment. Treasury yields stayed relatively flat, but the month‑long rally hinted at a possible shift in monetary expectations.
Looking ahead, analysts will be watching Meta’s Q2 guidance for clues on how the AI spend will translate into revenue and margins. Investors will also keep an eye on the upcoming earnings of key tech peers to gauge whether the AI slowdown is a brief wobble or the start of a broader correction.