U.S. stocks fell sharply on Friday, ending a rough week and a bruising month for technology shares. Disappointing earnings from Amazon and Intel, following a steep drop in Alphabet the day before, renewed investor doubts about whether the huge sums Big Tech is spending on artificial intelligence will pay off. The Nasdaq Composite had its worst day since early June, and the S&P 500 also had its weakest session since then.
What Moved Markets
The Dow Jones Industrial Average closed at 51,770.31, down 572.25 points, or 1.09%. The S&P 500 finished at 7,580.07, down 140.32 points, or 1.82%. The tech-heavy Nasdaq Composite settled at 25,437.00, down 747.73 points, or 2.86%.
The selling centered on companies with the largest AI budgets. Amazon reported a record cash outflow as it poured money into data centers, and Intel warned that weak PC demand, tied to high memory chip prices, would hurt its current quarter. Investors worry that if the biggest tech firms are overspending, they may eventually cut back, which would hurt chipmakers and other suppliers. For the month, the Nasdaq fell roughly 5%, its worst month since March 2025, and the S&P 500 lost about 1.2%. The Dow, helped by energy and other non-tech names, gained about 1.5%.
Other pressures piled on. Oil prices rose again on signs the U.S. could resume strikes on Iran, with U.S. crude trading above $100 a barrel. Two Federal Reserve officials, Alberto Musalem and Tom Barkin, said rates may need to go higher to fight inflation, and markets are leaning toward an interest rate hike in December. Crypto markets were also shaken by a reported $6.3 billion hack of the Binance exchange, with bitcoin dropping to around $77,000 at one point.
Notable Movers
Intel (INTC) plunged 28.58% to $65.76 after giving a fourth-quarter outlook that fell short of expectations and warning that PC makers are cutting back on orders as memory costs climb.
Reddit (RDDT) dropped 29.27% to $91.73. The company reported weaker-than-expected user growth, and analysts pointed to pressure from AI-powered search sending less traffic to the site.
Nvidia (NVDA) fell 4.22% to $204.64 as investors worried that customers like Amazon and Alphabet could slow their chip purchases if AI spending comes under pressure. Amazon (AMZN) slipped 1.41% to $240.35 after Thursday’s earnings miss.
On the other side, ExxonMobil (XOM) rose 2.16% to $187.25, and Chevron (CVX) gained 1.68% to $235.52. Both reported strong third-quarter profits helped by wider refining margins and high oil prices.
Looking Ahead
Investors will watch whether the tech sell-off continues or bargain hunters step in after October’s losses. Next week brings the U.S. midterm elections, which could shape the outlook for policy and for the Middle East conflict that has kept oil prices elevated. Keep an eye on remaining earnings reports from major companies, new comments from Fed officials about a possible December rate hike, and any further news on AI spending plans. Volatility has picked up, so it is a good time to check that your portfolio is balanced and matches your time horizon and comfort with risk.