US equity markets closed lower on Tuesday as broad selling in the technology sector dragged down the S&P 500 and Nasdaq Composite.
The decline was led by Meta Platforms, which saw its shares fall sharply following reports that the company is considering a large-scale equity offering to finance its artificial intelligence infrastructure build-out.
The tech-heavy Nasdaq suffered the steepest losses, reflecting investor caution toward high-growth names amid concerns over valuation and capital intensity.
Meta’s potential share issuance, which could raise tens of billions of dollars, has sparked debate among investors about dilution risks versus the strategic necessity of funding AI initiatives.
The move adds to recent volatility in the sector, where semiconductor manufacturers and other tech giants have faced renewed selling pressure.
Fed Chair Jerome Powell’s comments provided some support to broader market sentiment, helping to limit losses in non-tech sectors.