AI Spending Sparks Tech Rout

It's Benzinga, bringing Wall Street to Main Street. A two-day technology sell-off wiped more than $600 billion from Alphabet and Intel, as investors grew concerned about mounting artificial intelligence spending. Alphabet reported a second consecutive quarter of negative free cash flow, while Amazon plans $220 billion in capital expenditures this year. Meta also entered a bear market as its cash flow turned negative. The Philadelphia Semiconductor Index fell 7.2% Friday, extending its October losses beyond 15%. According to FINRA, retail margin debt reached a record $1.502 trillion in June 2026 before declining slightly to $1.48 trillion in September. Apollo chief economist Torsten Slocke said AI has delivered no financial payoff to corporate America outside the technology sector, with mainstream companies increasingly viewing AI spending as a cost rather than a source of growth. For all things money, visit Benzinga.com.