Big tech stocks suffer $1.5 trillion loss in 48 hours

Major technology companies lost $1.5 trillion in market value over 48 hours as investors dialed back expectations of a December interest rate cut from the Federal Reserve, pushing the next fully priced cut into March.

At the same time, large fiscal stimulus plans in the US and Japan are stoking fears that governments are fighting inflation with policies that could actually keep it higher for longer.

The selloff hit prominent tech names, including Nvidia, a graphics processing unit leader, Microsoft, a software and cloud leader, and Palantir, a data analytics firm, despite some companies reporting strong recent earnings.

Tesla, Amazon, Intel, AMD, Oracle, Alphabet, and IBM also experienced sharp declines.

Wall Street has been dumping AI-focused stocks partly due to growing fears of overvaluation, even as companies maintain heavy spending on AI initiatives. The Nasdaq index has seen pullbacks amid investor skepticism about long-term AI profitability.

Tech sector selloffs have accelerated, led by AI and semiconductor players, despite some firms reporting earnings that exceeded expectations.