AI Spending Fears Trigger Massive Tech and IT Sell-Off

A wave of investor anxiety over artificial intelligence drove significant share losses across the technology and IT services sectors between June 18 and June 22, 2026. The downturn began with a crash in IT-services stocks, where investors feared AI would structurally reduce demand for consulting and software engineering. Accenture suffered its worst single-day drop on record, with shares falling approximately 18% after the company lowered its full-year revenue growth outlook to 3% to 4%. Cognizant and EPAM Systems also saw declines of 10% and 9% respectively, while IBM experienced a smaller 5% dip.

By June 22, the sell-off expanded to technology megacaps as markets questioned massive capital expenditures on AI infrastructure. Alphabet Inc. lost over $256 billion in market capitalization, a decline compounded by the departure of Nobel laureate John Jumper from Google DeepMind to the startup Anthropic. Amazon, Meta Platforms, and Microsoft collectively lost more than $248 billion in market value. SpaceX shares also slid over 10% for a third straight session following a notes offering.

Despite the broader pessimism, chip-related stocks rose. Micron Technology hit record highs after announcing a strategic agreement with Anthropic to scale next-generation AI infrastructure. While executives at Accenture and IBM characterized AI as a business tailwind, market sentiment remained focused on the lack of clear returns on AI spending.