AI spending fears weigh on Nasdaq before mega-cap earnings

The Nasdaq slipped on Friday as investors dumped chip stocks amid worries that AI-related spending will squeeze profits ahead of next week’s megacap results (Microsoft, Amazon, Meta, Apple) and Alphabet’s big capital-spending plans. The S&P 500 was essentially flat and the Dow rose modestly, highlighting a cautious mood as traders weigh AI-cycle costs against potential gains. Intel beat on profits and raised spending guidance, but its shares fell in sympathy with the sector, while oil prices fell about 3% and some defensive areas like real estate and materials boosted parts of the market. For the week, the Nasdaq underperformed while the Dow and S&P posted small losses or gains depending on index.