US technology stocks sold off sharply on Friday, October 30, 2026, as weak results from Intel and heavy spending at Amazon renewed investor concern about the cost of building artificial intelligence infrastructure. The Nasdaq Composite closed down about 2.8%, the S&P 500 lost about 1.8% and the Dow Jones Industrial Average fell about 1.1%, according to Yahoo Finance. (Yahoo Finance (opens in a new tab))
The Nasdaq finished October down about 5%, its worst month since March 2025, Yahoo Finance reported. By midday, Reuters reported that the Nasdaq-100 was on track to lose just over $1 trillion in market value in a single session and more than $2 trillion for the month, and that the S&P 500 information technology index was headed for its steepest one-day fall since June. (Yahoo Finance (opens in a new tab); Reuters (opens in a new tab))
Intel's forecast falls short
Intel shares fell as much as 30% in Friday trading, Yahoo Finance reported, after the company forecast fourth-quarter revenue of $15 billion to $16 billion. Analysts had expected roughly $17 billion. Intel also guided to earnings of about 25 cents per share, compared with expectations of about 43 cents. (Yahoo Finance (opens in a new tab))
The weak outlook came even though third-quarter results beat estimates and data center revenue rose to $7.3 billion. Chief Executive Lip-Bu Tan told analysts that customers had begun signaling a PC slowdown linked to memory prices and availability. Yahoo Finance reported that Intel expects PC shipments to fall about 12% this year as AI data centers absorb memory chips. Reuters reported that Intel said it will burn cash this year because of the weak PC market, manufacturing bottlenecks and heavy spending to expand production. (Yahoo Finance (opens in a new tab); Reuters (opens in a new tab); Yahoo Finance (opens in a new tab))
Ynetnews, citing market data, put the drop near $145 billion in lost market value at its intraday low. Before the report, Intel shares had more than doubled in 2026, and Yahoo Finance noted the stock was still up more than 80% for the year even after the decline. (Yahoo Finance (opens in a new tab); Ynetnews (opens in a new tab))
Amazon's spending surge
Amazon shares fell about 2%. According to Yahoo Finance, the company spent about $77 billion on property and equipment from July through September, more than double the $35 billion it spent a year earlier. Its free cash flow was an outflow of more than $42 billion over the 12 months through September, the deepest in the company's history. Reuters reported that Amazon signaled another increase in capital spending next year. (Yahoo Finance (opens in a new tab); Reuters (opens in a new tab); Reuters (opens in a new tab))
Amazon, Google, Microsoft and Meta together spent more than $200 billion in the third quarter alone, Reuters reported, and several large technology companies have turned to the bond market to help fund AI investment. Alphabet shares extended losses on Friday after a record selloff in the previous session. (Reuters (opens in a new tab); Reuters (opens in a new tab))
Chip stocks were among the hardest hit. By midday AMD had dropped about 10%, Nvidia had fallen 3.7% and a broader semiconductor index was down 7%, according to Reuters. Dell and HP also declined, while defensive sectors such as consumer staples and healthcare gained. (Reuters (opens in a new tab))
Joe Saluzzi, co-manager of trading at Themis Trading, told Reuters that many of the stocks had gotten ahead of themselves and described the move as a reset rather than the end of the AI story. (Reuters (opens in a new tab))
In NeuraFeed's reading, the selloff reflects a shift in how investors judge the AI boom. Strong cloud demand alone is no longer enough; markets now want to see that record capital spending turns into cash, and the companies spending the most are being asked for that proof first. Intel's case shows a second effect, as demand for AI hardware raises memory costs that weigh on the PC business.
