A two-day slide in U.S. technology shares is denting the market’s artificial-intelligence trade, with the S&P 500 information-technology sector down about 2.5% for the week and the Nasdaq Composite off roughly 2%. Heavyweights such as Nvidia and Palantir have fallen 5% and 16%, respectively, as investors trim positions ahead of Federal Reserve Chair Jerome Powell’s speech in Jackson Hole on Friday. Scepticism over AI profitability intensified after a Massachusetts Institute of Technology survey found that 95% of companies have yet to see any boost to earnings from generative-AI projects. The study’s release followed comments from OpenAI Chief Executive Officer Sam Altman, who warned some investors could "lose a lot of money," fuelling fears that the sector is entering bubble territory. Company results are reinforcing the caution. Human-resources software maker Workday reported fiscal second-quarter revenue of $2.35 billion and adjusted earnings of $2.21 a share, beating Wall Street estimates. However, its outlook for $2.24 billion in subscription revenue this quarter merely matched expectations, and the company flagged budget pressure among U.S. government and higher-education customers. The stock fell about 5% after hours as investors demanded clearer evidence that Workday’s AI initiatives will translate into faster growth. Strategists say the pullback reflects both stretched valuations—tech’s forward price-to-earnings ratio recently touched 30—and seasonal weakness for equities. Some portfolio managers are rotating into staples, healthcare and financials, betting that any hawkish signal from Powell could hit richly priced technology names hardest.