Dow Jones falls 500 pts and Nasdaq drops over 2.5% as AI cash burn fears spark tech selloff

US stocks fell sharply as fears over AI cash burn sparked a selloff in technology shares, with the Dow Jones down 500 points and the Nasdaq dropping more than 2.5 per cent, according to Token Times.

The retreat centred on concerns that the money being poured into artificial intelligence is outrunning the returns it generates. That worry hit the chipmakers, cloud providers and platform companies that have driven the market's gains, and the selling spread across the wider index rather than staying confined to a single sector.

The move matters beyond US markets. AI-linked equities have become a large share of global portfolios, so a repricing of the technology trade feeds through to pension funds and index trackers. A sustained pullback would also raise the cost of capital for the data-centre and computing buildout that fintech and digital-asset firms increasingly rely on.

Token Times could not independently verify the scale of the decline or the specific triggers cited for the session. What is clear is that the market's tolerance for AI spending without visible returns has narrowed, and investors are now testing that patience against earnings.