With technology stocks weakening on concerns over artificial intelligence (AI) expenditure by big tech corporations, the three major U.S. stock indexes opened lower.
On the 29th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 237.81 points (0.049%) from the previous session to 48,777.79. The Standard & Poor's (S&P) 500 fell 73.26 points (1.05%) to 6,904.77 from the previous session, and the Nasdaq composite opened down 466.16 points (1.95%) at 23,391.29.
Analysts said investor sentiment was dampened by heightened concerns over excessive AI capital expenditure following big tech corporations' earnings releases after the previous session's close.
In particular, Microsoft (MS) fell more than 10%. In its fiscal year 2026 second-quarter earnings release the previous day, Microsoft posted revenue that beat expectations, but capital spending on AI infrastructure and other areas also surged.
Second-quarter capital expenditure (CAPEX) rose 66% year over year to $37.5 billion.
Satya Nadella, Microsoft's chief executive officer (CEO), said, "Even though we are still in the early stages of AI adoption, MS has built an AI business larger than its key franchises."
By contrast, Meta jumped more than 7% after releasing its fourth-quarter results for last year the previous day. Although capital spending was expected to increase sharply, the first-quarter guidance for this year far exceeded market expectations, which helped the stock.
By sector, technology and utilities were strong, while health care and financials were weak.
International oil prices rose on geopolitical tensions surrounding Iran. At the same time, the front-month West Texas Intermediate (WTI) for March 2026 delivery was up 3.20% from the previous session at $65.23 per barrel.