Wall Street tech selloff deepens as AI cash burn fears spark broad rout

U.S. equities tumbled sharply as investor anxiety over artificial intelligence infrastructure spending intensified, with the Nasdaq experiencing significant declines and the Magnificent 7 tech stocks seeing stunning drops. Amazon and Alphabet $GOOGL faced particular pressure following earnings misses and aggressive AI capital expenditure guidance.

The selloff reflected mounting concerns that tech giants' massive AI investments may not generate near-term returns, prompting a rotation away from growth stocks toward defensive sectors and fixed income.

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