US Stocks Sell Off on AI Capex Sustainability Worries; Asian Markets Open Lower
US equities declined Tuesday as investor concerns about the sustainability of AI-related capital expenditure weighed on tech sector valuations. Bloomberg reported Asian markets opened lower following the US session, with AI-adjacent names among the hardest hit.
The sell-off follows a stretch of elevated AI infrastructure spending announcements from hyperscalers; markets appear to be re-pricing near-term return expectations on that capex as Q2 earnings guidance arrives mixed across the sector.