Markets
Nasdaq Falls 2.9% as Intel Plunges and Ends October With Its Worst Month Since March 2025
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The S&P 500 had its worst day since June as worries over AI spending deepened, while the Dow still finished the month higher.
By Emma Cruz ·
U.S. stocks closed sharply lower on Friday as a record drop in Intel and disappointing results from several technology companies deepened concern about the cost of the artificial intelligence buildout, capping a rough October for the Nasdaq [1][2].
At the 4 p.m. ET close, the Nasdaq Composite was down 2.9% at about 25,437, and the S&P 500 had lost 1.8% to about 7,580, according to Investing.com [1]. The Associated Press reported that the S&P 500 decline was its worst day since June [2]. The Dow Jones Industrial Average fell 1.1% to roughly 51,771 [1]. Smaller companies did not escape, with the Russell 2000 down about 2% [3].
The session completed a difficult month for growth stocks. The Nasdaq lost more than 5% in October, its worst monthly showing since March 2025, and the S&P 500 slipped 0.9% for the month [1]. The Dow, which has less exposure to technology, ended October up 1.7% [1].
Intel was the biggest single story. Shares of the chipmaker fell about 29%, their worst day since 1974, after the company issued a fourth-quarter forecast well below analyst expectations [2][3]. TheStreet reported that Intel pointed to a severe slump in personal computer demand and a factory accident in Israel [3]. Chief executive Lip-Bu Tan said customers "began signaling a PC slowdown" tied to memory prices and availability, according to Yahoo Finance [4].
The selling spread across semiconductors and software. AMD and Qualcomm each dropped about 11%, Sandisk fell 13% and Datadog lost 11.5%, according to Investing.com [1]. Nvidia fell 4.9% and was the heaviest drag on the S&P 500, the AP reported [2]. TheStreet said the S&P 500 technology sector lost nearly 5% on the day and that close to 70% of U.S. issues declined [3].
Internet companies with weak outlooks were also hit hard. Reddit fell about 29% after a softer-than-expected fourth-quarter revenue forecast, and Twilio dropped about 17% after a disappointing growth outlook [3]. Roblox lost 16% after reporting a 9% decline in daily active users, and Pinterest fell 6% after missing revenue and earnings estimates [4]. Amazon slipped about 1.4% a day after results that showed heavy AI spending pushing its free cash flow over the past 12 months deep into negative territory [1][2].
The common thread is growing skepticism about whether the enormous sums going into AI will pay off in profits. Joe Tigay, a portfolio manager at Equity Armor Investments, said the AI trade was moving into the "'show me' phase," the AP reported [2].
Defensive and energy shares offered some shelter. Mondelez rose 4% and Colgate-Palmolive gained 2.9%, while Exxon Mobil and Chevron added 1.8% and 1.7%, respectively [2]. Brent crude rose 2.4% to $113.43 a barrel, supported by continued attacks on shipping around the Strait of Hormuz [2][3].
Government bonds rallied as investors looked for safety. The 10-year Treasury yield fell to 4.93% from 4.98% late Thursday, according to the AP, well below the more than 5.30% it reached earlier in the month [2]. The Cboe Volatility Index climbed to levels last seen in June [3]. Bitcoin slid about 2.4% to near $76,900 late in the session after a record hack at the Binance exchange [1].
Looking ahead, investors will watch the U.S. midterm elections on Nov. 3 and the conflict with Iran, where TheStreet noted that Qatari mediators were back in Tehran but that fighting could resume around the vote [3]. Markets will also be looking for evidence that heavy AI capital spending is turning into revenue and cash flow, and for Binance's planned reopening of customer withdrawals [3].
Sources:
[1] Investing.com, "Nasdaq slides over 5% for worst month since March 2025 as AI trade suffers", October 30, 2026. https://www.investing.com/news/stock-market-news/us-stock-futures-sink-nasdaq-down-2-as-amazon-intel-earnings-underwhelm-4985675
[2] The Associated Press, "Wall Street tumbles to its worst day since June after the sell-off for tech stocks deepens", October 30, 2026. https://www.fox8live.com/2026/10/30/wall-street-tumbles-its-worst-day-since-june-after-sell-off-tech-stocks-deepens/
[3] TheStreet, "Stock Market Today (Oct. 30, 2026): Intel, Reddit are latest tech earnings casualties as Nasdaq sinks nearly 3%", October 30, 2026. https://www.thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-oct-30-2026
[4] Yahoo Finance, "Stock market today: Nasdaq, Dow, S&P 500 clobbered as October closes with brutal sell-off", October 30, 2026. https://finance.yahoo.com/markets/live/stock-market-today-friday-october-30-dow-sp-500-nasdaq-amazon-intel-ai-sell-off-191429143.html
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.