Stocks plunges as Amazon and Intel trigger sell off tech stocks
· eris
Wall Street suffered another painful trading session on Friday as disappointing earnings from Amazon and Intel sent technology stocks into the red. The Nasdaq plunged nearly 3%, while growing concerns about AI spending and rising oil prices added to the investors fear.
US stocks dropped sharply on October 30, 2026, as investors reacted to disappointing corporate earnings and questioned whether technology companies are spending too much money on AI.
The Nasdaq Composite was among the hardest-hit major indexes, falling nearly 3% during Friday’s session. The S&P 500 lost around 1.8%, while the Dow Jones Industrial Average dropped approximately 1%.
The declines followed another difficult day for technology stocks on Thursday, raising concerns about whether Wall Street’s enthusiasm for artificial intelligence is beginning to fade.
Amazon was one of the companies attracting the most attention after reporting its third-quarter financial results.
Despite continued growth in its cloud computing division, investors were alarmed by the enormous amount of money the company is investing in artificial intelligence infrastructure. Amazon spent more than $77 billion on property and equipment during the quarter, much of it connected to data centres and computing technology.
The company’s free cash flow was also under pressure, raising questions about how quickly these investments will generate meaningful returns. Amazon shares initially dropped more than 7% in premarket trading before recovering some of losses.
Investors are increasingly concerned that major technology companies may be investing billions in AI infrastructure without seeing immediate financial benefits.
Intel suffers brutal stock market collapse
Intel experienced an even more dramatic reaction to its earnings announcement. Shares of the semiconductor manufacturer plunged nearly 29% in early trading after the company issued a disappointing forecast for the final quarter of 2026.
Although Intel reported quarterly revenue of approximately $16.5 billion, investors focused on weaker demand for personal computers and rising production costs.
Higher memory chip prices have made computers more expensive, creating additional pressure on consumer demand.
The company also warned about challenges affecting its data centre business, including supply shortages and manufacturing disruptions.
Intel’s disappointing outlook added to fears that the semiconductor industry could face a difficult period despite strong interest in artificial intelligence.
Nasdaq hit as investors abandon technology stocks
The selling pressure quickly spread beyond Amazon and Intel.
Major semiconductor companies, including Nvidia and AMD, also suffered significant losses as investors reassessed the outlook for AI-related businesses.
The Nasdaq fell to its lowest level in nearly three months during Friday’s session.
Other technology companies faced pressure following disappointing financial updates.
Reddit shares plunged more than 20% after investors reacted negatively to its earnings and user growth outlook. Roblox and Pinterest also experienced sharp declines.
The widespread sell-off demonstrated how quickly sentiment can change when investors become concerned about corporate profitability.
Is Wall Street’s AI boom beginning to crack?
The latest market downturn has renewed debate about whether technology stocks have become too expensive. For several years, investors have rewarded companies announcing major investments in artificial intelligence.
However, the enormous costs associated with building data centres, purchasing advanced chips and expanding computing infrastructure are becoming harder to ignore.
Amazon, Alphabet and other technology giants are spending unprecedented amounts to compete in the rapidly expanding AI industry.
While demand for artificial intelligence remains strong, investors increasingly want evidence that these investments will produce sustainable profits.
Friday’s sharp declines suggest that confidence in the sector is being tested.
With technology stocks accounting for a substantial portion of major US indexes, further weakness could continue to affect the broader stock market.
For investors, the coming weeks may prove important as additional earnings reports reveal whether corporate profits can justify the massive sums being poured into artificial intelligence.