Wall Street Correction: US Market Reevaluates Tech Sector Due to AI Costs

The echo of the Japanese correction has reached America. On July 24, 2026, Wall Street futures showed a weak attempt at a rebound following a massive sell-off in the technology sector. The reasons for the fall are identical to global fears—investors are panicking over the unsustainable AI CAPEX of corporations.

The free cash flow of tech giants has come under direct attack (as confirmed by LSEG data two days prior). Deploying clusters to train frontier models requires tens of billions of dollars in capital investments every quarter, hitting business margins. The market is sending a harsh signal: the period of unlimited credit for the AI revolution is over. If integrators and hyperscalers do not demonstrate explosive growth in pure B2B revenue from selling AI services in upcoming quarterly reports, the current tech sector correction will turn into a prolonged macroeconomic downturn.

Source: Reuters