Wall Street ends October in the red: Nasdaq falls 2.9% in its worst day since June as tech stocks sell off

New York — Wall Street closed on Friday, October 30, with sharp losses, and the Nasdaq posted its worst session since June, in a day marked by selling in technology stocks as investors questioned whether the enormous spending on artificial intelligence (AI) will deliver the returns needed to justify current prices.

The Nasdaq Composite lost 747.73 points, or 2.9%, to 25,437. The S&P 500 fell 140.32 points, or 1.8%, to 7,580.07, and the Dow Jones Industrial Average dropped 572.25 points, or 1.1%, to 51,770.31, according to market data cited by the Associated Press. The Nasdaq ended October 7.8% below its record closing high of October 6, in its worst monthly performance since March 2025.

Intel was one of the main triggers of the decline: its shares plunged nearly 29%, in their worst day since 1974, after the company forecast fourth-quarter earnings below analysts' expectations, despite reporting a quarterly profit above forecasts.

Amazon also weighed on the market, falling 1.9% after reporting weaker-than-expected summer earnings. The company said it spent $94.8 billion on property and equipment in the twelve months before its report, most of it on AI investments, and its chief executive, Andy Jassy, projected capital spending of $220 billion in 2026, mostly for AI data centers.

The session followed a drop of more than 12% in Alphabet the previous day, its worst day on record, after the company said its cash spending rose in the summer compared with the spring because of similar AI investments. By contrast, investors sought refuge in safer assets: the yield on the 10-year Treasury fell to 4.93%, from 4.98% at Thursday's close, and consumer staples and health care stocks showed strength during the session.

Photo: AP

Source: Associated Press