Wall Street tumbles to its worst day since June after the sell-off for tech stocks deepens
Investors sold technology shares after Intel and Amazon warned that heavy AI spending and weak guidance could squeeze future profits.
- 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.
149 Articles
149 Articles
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.
New York, 30 Oct (EFE).- Wall Street closed this Friday in red and the Nasdaq index scored its worst month in more than a year, dragged by massive sales in the technology sector in the face of the latest quarterly results and doubts about the sustainability of artificial intelligence (AI). At the bell’s touch, [...] The Wall Street entrance closes in red and the Nasdaq scores its worst month in more than a year was first published in HolaNews.
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