Wall Street markets experienced a sharp decline in trading on Friday, triggered by losses in Microsoft, Amazon and other technology companies.
The Nasdaq Composite Index closed at its lowest level since November last year.
This situation occurred after Google's parent company, Alphabet, expressed its readiness to double its capital spending on artificial intelligence (AI) to master the new technology.
Alphabet shares fell 0.55% following a capital spending plan of $185 billion in 2026.
Meanwhile, Alphabet and other 'Big Tech' competitors are expected to spend more than $500 billion on AI development this year.
Other technology firms including AI chip leader, Nvidia, which will benefit from increased spending in the AI industry, also fell 1.4%, followed by Microsoft (5%), Palantir (6.8%) and Oracle (7%).
Recently, investors have been seen to be more cautious about large spending in the AI sector to ensure that the investment can generate income and profits in the near term.
There are also concerns among investors that AI technology risks undermining demand for traditional software, reducing profit margins across sectors.
The S&P 500 index fell 1.23% to end the session at 6,798.40 points, the Dow Jones fell 1.20% to 48,908.72 points, while the technology-focused Nasdaq plunged 1.59% to 22,540.59 points.
At the same time, the US labor market showed signs of deterioration as new jobless claims for the week ending January 31 rose more than expected.
Meanwhile, job openings in December last year fell to their lowest level in more than five years.
