AI Tech Stocks Plunge as Anthropic Revenue Slowdown Triggers Market Sell-Off

U.S. stock indices delivered mixed results on Thursday as a sharp sell-off in artificial intelligence infrastructure companies weighed heavily on technology benchmarks. The Nasdaq 100 dropped 1.5 percent in its sixth decline across seven trading sessions, while the S&P 500 fell 0.5 percent. In contrast, the Dow Jones Industrial Average gained 0.6 percent as investors rotated away from speculative technology firms into traditional blue-chip companies.

The downturn in tech shares accelerated after Anthropic reported third-quarter revenue growth that decelerated from earlier in the year and fell short of most analyst projections. The disappointing figures amplified investor doubts regarding whether massive capital spending in artificial intelligence will generate adequate returns. Semiconductor makers Micron, Intel, AMD, and Marvell each fell more than 6 percent, while storage providers Seagate and Western Digital dropped 9 percent. Higher producer inflation also raised expectations of a Federal Reserve rate hike, pressuring heavily indebted data center firms like CoreWeave, which saw its stock tumble 8 percent alongside a sharp decline in its bonds.

Moving forward, investors will watch Federal Reserve policy signals and inflation trends to see if rising borrowing costs continue to strain debt-financed infrastructure. Market watchers will also monitor whether money keeps flowing into defensive sectors, following gains in Walmart, up 3 percent, and Eli Lilly, up 2 percent.