Wall Street tumbles to its worst day since June after the sell-off for tech stocks deepens
- 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.
385 Articles
385 Articles
American stock indices fell on Friday following technological giant stocks due to increased concerns of investors about their huge spending on artificial intelligence.
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Svenska Dagbladet
Dagens Nyheter.The stock market has turned downward after several AI-linked companies failed to deliver as expected. The tech giants have invested thousands of billions in a short time – and now investors want answers about whether it is worth it. – The big cloud of concern is the enormous investments that American companies are currently making in data centers and AI, says Maria Landeborn, savings economist at Danske Bank.
The latest round of results from big US tech companies has eroded the market's euphoria over artificial intelligence (AI). Companies the size of Amazon and Alphabet (Google's parent company) have sent investors reeling with their spending forecasts for computing infrastructure, which much of the market considers excessive. Even Microsoft, which has managed to save its furniture with positive cash generation, has been far from the stock market ex…
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