SAN FRANCISCO (KRON) -- Senator Bernie Sanders (I-Vt.) had some choice words for Big Tech companies Friday as a massive sell-off for tech stocks dragged the market down, days before the midterms. "Mad Money" host Jim Cramer called it a "stock-pocalypse" as the S&P 500 dropped 1.8% to its worst day since June, closing out a third-straight week of losses.
Cramer, it's worth adding took to X hours earlier telling people to "buy."
The weakness in tech stocks dragged the Nasdaq composite down nearly 3%, while the Dow Jones Industrial Average dropped 572 points, or 1.1%. While overall, the U.S. stock market is only 3.1% below its all-time high, jitters around artificial intelligence have led to broader market insecurity.
AI has delivered ‘zero’ payoff outside of tech, leading economist says
The stock market -- largely driven by "Magnificent 7" tech stocks -- have been a bright spot in an economy that has otherwise struggled with inflation, stagnating wages, and slow job growth. But as Tuesday's midterm looms, worries about AI in general have become a concern for voters in both political parties.
President Donald Trump has frequently touted the stock market's performance as a measure of his own success. It's not clear what impact, if any, a shaky stock market for tech companies, many of which are based in the Bay Area, could have on Tuesday's election.
The markets point to increasing uncertainty, and perhaps impatience, with AI and, in particular, the technology's ability to deliver a payoff, either in productivity or in terms of the bottom line.
"We're moving out of the hopes and dreams phase of the AI trade and into the 'show me' phase," said Equity Armor Investments portfolio manager Joe Tigay, in a note to investors.
If the AI bubble does burst, tech companies would do well not to expect any help from Sen. Sanders.
"Companies like Microsoft, Meta, Google, Amazon, SpaceX, Oracle & Nvidia have racked up $3 trillion in debt on a high-stakes gamble on AI," Sanders tweeted Friday. "Big Tech Oligarchs: If your AI bet fails, don't come begging to taxpayers. You won't be bailed out -- period. End of Discussion."
The Associated Press contributed to this report.
