A broad selloff in technology stocks sent major U.S. indexes sharply lower Friday, with Intel plunging nearly 29% as disappointing corporate earnings and concerns about massive artificial intelligence investments rattled Wall Street.
By yourNEWS Media Newsroom
U.S. stocks suffered their steepest losses in months Friday, Oct. 30, as investors sold technology shares following disappointing earnings reports and growing concerns that hundreds of billions of dollars being invested in artificial intelligence may not generate the profits needed to justify elevated stock valuations.
The technology-heavy Nasdaq Composite fell 747.73 points, or 2.9%, to close at 25,437.00, recording its worst trading session since June. The S&P 500 dropped 140.32 points, or 1.8%, to 7,580.07, while the Dow Jones Industrial Average lost 572.25 points, or 1.1%, finishing at 51,770.31.
The losses accelerated a broader retreat from technology shares that had previously driven much of Wall Street’s gains. The Nasdaq also recorded its worst monthly performance since March 2025, according to MarketWatch’s coverage of Friday’s trading.
Intel led the decline, losing 28.6% of its market value after the semiconductor manufacturer issued a fourth-quarter profit forecast that fell short of analysts’ expectations. The drop marked the company’s worst single-day performance since 1974.
Although Intel reported better-than-expected quarterly earnings, investors focused on its weaker outlook and concerns about demand for personal computers.
Chief Executive Officer Lip-Bu Tan acknowledged continuing pressure on the personal computer industry, where rising component costs and changing technology spending patterns have complicated the company’s recovery efforts.
The selloff extended across semiconductor manufacturers, with Advanced Micro Devices falling approximately 11%, Broadcom declining 5.5% and Micron Technology losing 5.3%. Nvidia, one of the principal beneficiaries of the artificial intelligence investment boom, dropped 4.2%.
According to Reuters’ report on the technology-sector downturn, investors have become increasingly concerned about the enormous capital expenditures required to build artificial intelligence data centers and whether technology companies can generate sufficient returns from those investments.
Major technology companies have committed substantial resources to purchasing advanced processors, expanding cloud infrastructure, constructing data centers and developing artificial intelligence services.
Those expenditures have supported semiconductor manufacturers, equipment suppliers and utilities serving large computing facilities. However, their scale has raised questions about how quickly businesses can convert AI investments into sustainable earnings.
Amazon contributed to Friday’s losses after reporting quarterly results that fell short of expectations and disclosing continued heavy spending on artificial intelligence infrastructure.
The company’s shares declined approximately 1.4% as investors examined the financial consequences of its expansion.
Amazon reported spending $94.8 billion on property and equipment over the preceding 12 months, primarily reflecting investments in artificial intelligence and supporting infrastructure.
The company also reported negative free cash flow of $42.4 billion over the same period, highlighting the substantial financial demands associated with its technology investments.
Free cash flow represents the cash remaining after a company accounts for operating expenses and capital expenditures. Persistent negative free cash flow can raise concerns about financing requirements, even when a company continues generating revenue.
Alphabet, Google’s parent company, also faced renewed selling pressure following disappointing earnings earlier in the week.
Alphabet shares had plunged more than 12% Thursday in their largest single-day percentage decline on record after the company reported weaker-than-expected results and increased spending on artificial intelligence.
The stock declined further Friday, losing approximately 1.4%.
The company’s financial disclosures showed that massive investments in computing infrastructure were weighing on cash generation. Investors also questioned whether artificial intelligence-powered search products could eventually reduce revenue from Google’s traditional advertising business.
The pressure extended to other internet businesses whose operations depend on search traffic.
Reddit shares plunged approximately 29% after the social media company warned that changes to Google’s search products were reducing referral traffic to its platform.
The company indicated that artificial intelligence-generated search responses could affect the number of users visiting websites that historically received substantial traffic through Google.
The developments intensified concerns about the potential disruption caused by artificial intelligence, even as technology companies continue investing heavily in its development.
According to The Associated Press’ account of the market decline, Wall Street’s concerns increasingly center on whether expected productivity gains and future revenue can justify the enormous investments being made by technology companies.
The selloff also reflects unease over the concentration of recent market gains in a relatively small number of large technology companies.
Shares of Nvidia, Microsoft, Amazon, Alphabet and other technology leaders have played an outsized role in the performance of major stock indexes. Consequently, sharp declines in those companies can pull the broader market lower even when other industries perform better.
Friday’s losses followed a difficult October for technology investors.
The Nasdaq Composite finished the month approximately 7.8% below its most recent record closing high, reached earlier in October. The Nasdaq-100, which tracks the largest nonfinancial companies listed on the exchange, entered correction territory during the selloff, declining more than 10% from its previous peak.
A correction generally refers to a decline of at least 10% from a recent high.
The market weakness also spread beyond technology shares.
The Russell 2000 index of smaller American companies declined 47.37 points, or 1.7%, to 2,811.84.
Financial stocks also fell as investors reduced exposure to riskier assets. Precious metals experienced significant selling pressure, with gold and silver declining despite their traditional reputation as alternatives during market uncertainty.
Cryptocurrency markets were similarly affected.
Bitcoin dropped below $77,000 after a major security breach at cryptocurrency exchange Binance heightened concerns about digital asset security. Cryptocurrency-related stocks, including Coinbase and Robinhood, also suffered declines.
The cryptocurrency losses added to a difficult session for investors already confronting volatility in technology and other speculative investments.
Meanwhile, U.S. Treasury yields declined as investors sought the relative safety of government bonds.
Bond prices generally rise when yields fall, meaning the movement reflected increased demand for Treasury securities amid the stock-market retreat.
Oil prices moved higher, adding another source of uncertainty for investors.
Brent crude futures climbed to approximately $113 per barrel during Friday’s trading, while U.S. West Texas Intermediate crude approached $104 per barrel.
Elevated energy prices can increase transportation, manufacturing and household expenses, potentially complicating efforts to control inflation.
Higher inflation can also limit the Federal Reserve’s ability to reduce interest rates, which would otherwise help lower financing costs for businesses and consumers.
Technology companies can be particularly sensitive to interest rates because their stock valuations frequently depend on expectations of substantial earnings growth over future years.
Higher borrowing costs can also make large infrastructure investments more expensive, including the construction of artificial intelligence data centers.
Despite the broad decline, some major energy companies posted gains.
ExxonMobil and Chevron advanced after reporting stronger-than-expected quarterly earnings, benefiting from higher refining margins and elevated energy prices.
ExxonMobil gained approximately 2.2%, while Chevron rose about 1.7%.
Several consumer products companies, including Mondelez International and Colgate-Palmolive, also attracted buyers after reporting better-than-expected financial results.
Their performance illustrated the uneven nature of Friday’s trading, with investors shifting away from certain technology investments while continuing to support companies delivering stronger earnings or benefiting from higher commodity prices.
For the week, the S&P 500 declined 0.6%, the Dow lost 0.9% and the Nasdaq fell 2%. The Russell 2000 gained 1.3% despite Friday’s losses.
The S&P 500 recorded its third consecutive weekly decline, reflecting growing caution following the market’s earlier advance.
Nevertheless, major U.S. indexes remained positive for 2026.
Through Friday’s close, the S&P 500 had gained 10.7% for the year, while the Dow was up 7.7%. The Nasdaq retained a 9.4% year-to-date gain, and the Russell 2000 remained 13.3% higher.
Those figures indicate that the recent downturn has reduced, but not erased, the market’s gains accumulated earlier in the year.
The October decline has also exposed a growing divergence between technology stocks and sectors such as energy, where stronger earnings and higher commodity prices have supported valuations.
As MarketWatch reported in its analysis of the technology selloff, investors are reassessing the financial outlook for companies that have committed enormous amounts of capital to artificial intelligence infrastructure while confronting weaker performance in some of their established businesses.
The critical question is whether artificial intelligence products and services will eventually generate enough revenue and productivity improvements to support the industry’s current spending.
Some market participants view the downturn as a correction following substantial gains in AI-related stocks, rather than evidence of a broader financial crisis. Others remain concerned that expectations for future earnings have exceeded what companies can reasonably deliver.
Friday’s trading reflected those uncertainties as disappointing corporate forecasts, heavy capital expenditures and concerns about interest rates converged to produce Wall Street’s steepest decline since June.
With the third-quarter earnings season continuing, investors will be examining upcoming company reports for evidence that spending on artificial intelligence is translating into revenue growth, improved profitability and sustainable cash flow.
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