Wall Street sinks as Meta slumps 8% and the Nasdaq falls over 2% on fears over the cost of AI

The sell-off came a day after Meta announced plans for a new class of shares to fund its AI expansion. Investors fear more tech giants will sell billions in stock to pay for data centres. Surging oil prices, driven by the Middle East conflict, stoked inflation fears. In London the FTSE 100 closed down 0.3% at 10,725.03.

Lam Research plunged 10% after its results, SpaceX fell 9% and Nvidia dropped 4%.

Meta finance chief Susan Li warned its Muse AI agent will push serving costs higher.

Trade Nation's David Morrison warned that market support levels are 'creaking dangerously'.