Markets
Nasdaq Futures Drop 2% as Amazon and Intel Results Deepen AI Spending Worries
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Intel sinks about 25% and Amazon 7% before the bell, while chip stocks fall in Tokyo and Europe.
By Emmanuel Cruz ·
U.S. stock index futures pointed to a sharply lower open for technology shares on Friday after quarterly results from Amazon and Intel added to investor concern about how much cash companies are spending to build out artificial intelligence.
As of 4:04 a.m. ET, Nasdaq 100 e-mini futures were down 640 points, or 2.16%, S&P 500 e-minis were down 1%, and Dow e-minis were off 0.05%, Reuters reported [1]. The split reflects how heavily the selling is concentrated in large technology and chip stocks, which carry more weight in the Nasdaq 100 than in the price-weighted Dow.
Intel shares were down about 25% in premarket trading after the chipmaker's fourth-quarter outlook fell short and it warned it would burn cash this year [1][2]. Amazon was down roughly 7% before the bell after its third-quarter report showed a sharp cash outflow and signaled higher capital spending next year [1][2]. Yahoo Finance described the Amazon report as a rare earnings miss for the company [2].
The pressure spread across the AI supply chain. In premarket trading, Advanced Micro Devices fell 7%, Broadcom about 4% and Nvidia 2.5%, while Alphabet slipped another 0.9% after a record selloff on Thursday, according to Reuters [1]. Reddit dropped about 21% after its chief executive warned that daily visitors could decline in the fourth quarter [1].
"It's asking what you have to spend to get there," Jake Behan, head of capital markets at Direxion, told Reuters, describing a shift in how investors judge AI-related growth [1].
The selling started in Asia. Japan's Nikkei fell as much as 3% on Friday and was down 2.8% in Reuters' latest reading, dragged by chip-equipment makers including Advantest, down 9.1%, and Tokyo Electron, down 5.6%, Reuters reported [3]. The broader Topix fell a milder 1.3% [3].
In Europe, the STOXX 600 slipped 0.3%, with semiconductor names ASML, ASM International and BE Semiconductor each down more than 5% and Infineon off more than 4%, according to Investing.com [4]. Germany's DAX fell 0.6%, while London's FTSE 100 edged up 0.2%, supported in part by a 4% gain in AstraZeneca after better-than-expected quarterly results [4]. The STOXX 600 remained on course for its best month since June [4].
The losses would leave the Nasdaq on track to snap a two-month winning streak, while the S&P 500 and the Dow were still headed for monthly gains, Reuters said [1]. The week has also included a Federal Reserve decision to keep rates on hold, with analysts expecting a hike as soon as December [1].
There is more on the calendar before and after the open. Exxon Mobil and Chevron were scheduled to report results before the bell, along with AbbVie and AstraZeneca [1][2]. On the economic front, investors will get the third-quarter employment cost index, forecast to rise 0.8% after a 0.9% gain, and the MNI Chicago purchasing managers' index for October, expected at 54.6 versus 58.8 previously, according to Yahoo Finance [2].
What to watch next: whether the tech selloff broadens into the rest of the market after the open or stays confined to AI-related names, how chip stocks trade after Intel's steep decline, and how investors read the labor cost data for clues on the Fed's next move.
Sources:
[1] Reuters (via KFGO), "Nasdaq futures tumble as Amazon, Intel results deepen AI spending woes", October 30, 2026. https://kfgo.com/2026/10/30/nasdaq-futures-tumble-as-amazon-intel-results-deepen-ai-spending-woes/
[2] Yahoo Finance, "Stock market today: Dow, S&P 500, Nasdaq futures fall as Amazon, Intel earnings rattle investors", October 30, 2026. https://finance.yahoo.com/markets/live/stock-market-today-friday-october-30-dow-sp-500-nasdaq-083236552.html
[3] Reuters (via Yahoo Finance), "Japan's Nikkei slumps 3% as tech stocks tumble on AI worries", October 30, 2026. https://finance.yahoo.com/markets/world-indices/articles/japans-nikkei-slumps-3-tech-022028372.html
[4] Investing.com, "European shares dip as Amazon, Intel stoke AI cash-burn fears", October 30, 2026. https://investing.com/news/stock-market-news/european-shares-dip-as-amazon-intel-stoke-ai-cashburn-fears-4985916
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.