Is Wall Street losing confidence in artificial intelligence?

A difficult week for technology stocks may indicate a loss of investor confidence in artificial intelligence.

The Nasdaq Composite Index fell 3% — making this week the worst since President Donald Trump announced his sweeping tariff plan in April, The Wall Street Journal reported.

Technology companies that have performed well this year were among the hardest hit, with Palantir’s stock price falling 11% this week, Oracle’s price falling 9%, and Nvidia losing 7%. These declines also come after earnings reports in which Meta and Microsoft indicated that they plan to continue spending heavily on artificial intelligence (both companies fell by about 4%).

“Valuations have stretched,” Jack Ablin of Cresset Capital told the Wall Street Journal. “The slightest bit of bad news is magnified…and good news is not enough to move the needle because expectations are already too high.”

Economic factors such as the ongoing government shutdown, low consumer sentiment, and widespread layoffs are also likely to drag the stock market down. But the S&P 500 and the less tech-heavy Dow Jones Industrial Average didn’t do quite as badly, falling 1.6% and 1.2%, respectively.