Wall Street closed out October on a rough note on Friday, with technology stocks leading a broad sell-off as investors questioned how quickly massive spending on artificial intelligence will turn into profits.
The Nasdaq Composite fell 747.73 points, or 2.86 percent, to close at 25,437.00. That was its steepest single-day percentage drop since June 5, and it left the index about 7.8 percent below its record closing high set on October 6. The S&P 500 dropped 140.32 points, or 1.82 percent, to 7,580.07, its worst day since June. The Dow Jones Industrial Average slipped 572.25 points, or 1.09 percent, to 51,770.31. The small-cap Russell 2000 fell 47.37 points, or about 1.7 percent, to 2,811.84.
The immediate trigger was disappointing quarterly results from Intel and Amazon, released late Thursday. Intel plunged roughly 29 percent — its worst single day in decades — after warning about cash burn, a weak personal computer market, and heavy spending to expand production. The drop wiped out roughly $140 billion in market value, according to market reports. Amazon also came under pressure as investors focused on its rising AI infrastructure costs.
For the month as a whole, the Nasdaq fell about 5.3 percent, its steepest monthly decline since March 2025. The S&P 500 slipped about 0.9 percent for October, while the Dow managed a gain of about 1.7 percent. The S&P 500 technology sector posted its largest monthly percentage loss since March 2025, and communication services saw its biggest monthly drop since April 2022.
Not everything fell. Energy stocks held up better: ExxonMobil rose about 2.2 percent and Chevron added about 1.8 percent after both oil giants reported stronger-than-expected summer profits.
With the midterm elections just days away and more earnings still to come, traders will be watching whether the tech pullback stabilizes or deepens in the new week. This article is for information only and is not financial advice.
Sources: Reuters, The Economic Times, Moneycontrol, ET Now News
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