Quick Take Big Tech’s 2026 capital spending plans have blown past expectations , sparking a sharp market reaction. Investors still believe in AI — but they now want clear proof of returns , not just long-term promises. The CapEx Shock Across recent earnings, mega-cap tech companies pushed 2026 CapEx from “already massive” to “historically extreme” : Meta Platforms : US$115–135B vs US$110B consensus Stock jumped ~10% initially, but gains faded → investors want evidence, not AI rhetoric Microsoft : US$140–150B vs US$109B consensus Stock fell ~10% → ROI timing now under scrutiny Alphabet : US$175–185B vs US$115B consensus Shares slipped as markets adjusted to a more capital-intensive Google Amazon : ~US$200B vs US$146B consensus Stock dropped ~11% after-hours on cash flow concerns What Investors Are Really Worried About This is no longer about believing in AI — it’s about financial optics and timing . Key Market Fears CapEx is rising fa...
Summary Wall Street’s most popular trades — tech stocks, AI plays, gold and cryptocurrencies — are all unwinding at the same time after a sharp market sell-off. There was no single trigger. Instead, stretched valuations, AI disruption fears, heavy capex plans, and weakening labour data combined to spark a broad retreat from risk. What’s Driving the Sell-Off Crowded trades are being abandoned as investors turn defensive. AI optimism is being questioned , especially as new models threaten existing software businesses. Massive AI spending plans from Big Tech are raising concerns about overspending and future returns. Weak US labour data added fears that economic momentum may be slowing. Valuations across risk assets had run too far, too fast. Market Impact at a Glance S&P 500 fell 1.2% , marking its third straight daily decline Nasdaq 100 saw its worst slide since April Silver collapsed ~20% Bitcoin plunged over 13% , erasing ...