Nasdaq Tumbles as AI Spending Worries and Moderna Drop Hit Tech
The Nasdaq suffered a sharp decline as concerns about AI spending weighed on Meta and other technology shares. Moderna fell about 25% after early cancer vaccine trial data leaked, and Merck also declined. The U.S. Treasury proposed restrictions on American investment in Chinese AI and chip sectors, spreading the selloff to global markets.
The selloff centered on technology and AI-linked names. Meta fell more than 7% even after topping quarterly revenue expectations, as investors reacted to rising AI capital spending and a record level for its default insurance. Moderna lost roughly a quarter of its value—about $24 billion—after early Phase 3 melanoma vaccine data surfaced without authorization; Merck slipped more than 3% despite trial results showing a 42% lower risk of melanoma death or recurrence.
The U.S. Treasury’s proposed limits on American investment in Chinese AI and advanced-chip sectors widened the retreat: Samsung and SK Hynix declined in Asia, the Nikkei fell to 62,287, and SK Hynix paused a planned U.S. listing of Solidigm.
The tech selloff could affect ordinary investors through retirement and brokerage accounts, while tighter AI and chip investment rules may reshape funding for startups and research. Workers in technology, semiconductors, and biotech may face slower hiring or project delays if spending cools. Patients and consumers could see vaccine and AI-product timelines shift, though the leaked trial data also highlights both promising cancer-treatment results and risks around information disclosure.