Tech Stocks Head South as Investors Sour on AI Growth

The Nasdaq 100 closed down 1.22% on Friday.

The Nasdaq 100 slipped 0.16% in August, even as the broader S&P 500 rose 3.56%. (Photo: aa440 Flickr) 

While U.S. markets were shut on Monday for the Labor Day holiday, futures contracts for the index traded flat, suggesting investors aren’t expecting much from tech stocks when the opening bell rings in New York this morning, Jim Edwards reported for Fortune Tech.

The Nasdaq 100 slipped 0.16% in August, even as the broader S&P 500 rose 3.56%. Tech stocks were dogged by debate over whether artificial intelligence is in a bubble.

An MIT study also found that 95% of companies have yet to see returns on their AI investments.

Deutsche Bank analysts led by Jim Reid wrote Monday: “Nvidia (-3.32% on Friday) was a major driver of this softness, losing ground after Marvell Technology’s outlook raised doubts over demand for data-center equipment and as China’s Alibaba unveiled a new AI chip.”