Wall Street tumbles to its worst day since June after the sell-off for tech stocks deepens
Investors sold tech shares after Amazon and Intel raised fresh questions about whether heavy AI spending will deliver enough profit.
- On Friday, October 30, 2026, U.S. stocks tumbled as heavy losses in major tech companies triggered the worst market performance since June, with the Nasdaq composite falling 3.4% and the S&P 500 dropping 1.8%.
- Market sentiment shifted from optimistic 'hopes and dreams' to a skeptical 'show me' phase regarding returns on billions in artificial intelligence spending, driving mounting investor skepticism about the sustainability of massive capital expenditures.
- Intel shares plummeted 30.1% for their worst daily performance since 1974, while Amazon reported negative free cash flow of $42.4 billion over the prior 12 months, fueling investor concerns about AI-related spending sustainability.
- Investors sought safety in government bonds, driving the 10-year Treasury yield down to 4.89% from 4.98% late Thursday, while capital rotated into defensive sectors like consumer staples and energy amid tech portfolio pressure.
- Analysts remain divided on whether massive data center buildouts will generate sufficient profit; Matt Maley, chief strategist at Miller Tabak + Co, said AI returns are being 'pushed even further down the road.
160 Articles
160 Articles
A historic decline in Intel and tech giants has shaken stock markets as investors doubt the quick payback of huge investments in artificial intelligence.
Wall Street drops to its worst day since June after tech sell-off deepens
A sell-off for tech stocks got even worse on Friday on worries that Wall Street’s frenzy around artificial intelligence technology sent prices too high. The S&P 500 tumbled 1.8 per cent for its worst day since June, and it closed out a third straight losing week. The weakness for technology stocks dragged the Nasdaq composite down a market-leading 2.9 per cent, while the Dow Jones Industrial Average dropped 572 points, or 1.1 per cent. The US st…
The US stock market suffered a significant drop, dragged by the technology sector after the results of Amazon and Intel.Uncertainty about the profitability of artificial intelligence influences investments, while the Nasdaq index drops by 2.86%.
The latest quarterly figures from Amazon and Intel exacerbate the alarm mood on Wall Street. Especially the chip manufacturer pulls the entire tech division into the minus with a price drop of 30 percent. The US interim elections make investors more nervous.
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