Wall Street indexes fall as Meta, Microsoft drag, along with Fed rate concerns

Wall Street’s three major indexes lost ground on Thursday with the Nasdaq Composite and the S&P 500 leading losses as Meta and Microsoft shares tumbled on worries over surging AI spending, while investors also digested a more hawkish tone from the U.S. Federal Reserve.

Meta shares sank 11.3% for their biggest one-day drop in three years after the social media company forecast “notably larger” capital expenses next year, thanks to investments in artificial intelligence.