US stocks opened sharply lower on Friday, October 30, with technology shares leading the decline as disappointing earnings from Amazon and Intel renewed concerns over Big Tech’s massive spending on artificial intelligence (AI).
The tech-heavy Nasdaq Composite fell 2.2%, while the S&P 500 declined 1.2%. The Dow Jones Industrial Average was down 155 points, or 0.3%, as investors moved away from technology stocks and rotated towards more defensive sectors.
Amazon shares dropped around 5% after the company reported third-quarter revenue and earnings below Wall Street expectations. The e-commerce and cloud computing giant also reported negative free cash flow of $42.4 billion, while retaining its 2026 capital expenditure forecast of $220 billion.
Intel shares plunged around 26% after the chipmaker issued a weaker-than-expected outlook for the current quarter, citing signs of a slowdown in the personal computer market. Revenue from its Client Computing and Physical AI group declined 5% year-on-year to $8.1 billion.
The sell-off extended to other technology stocks, with SanDisk shares falling 9% despite the data storage company reporting better-than-expected fiscal first-quarter results. SanDisk also announced an eight-for-one forward stock split.
Meanwhile, investors remained cautious amid rising crude oil prices. Brent crude futures climbed to around $113 per barrel, while US West Texas Intermediate (WTI) crude traded near $104 per barrel, adding to concerns over inflation and the broader market outlook.
Elsewhere, energy stocks remained in focus after ExxonMobil and Chevron reported earnings that benefited from stronger refining margins amid the ongoing conflict in West Asia. Pharmaceutical company AstraZeneca also reported better-than-expected earnings ahead of the market open.
AI spending concerns weigh on technology stocks
The latest declines come as investors increasingly scrutinise the scale of investments being made by major technology companies to build out their AI infrastructure and whether the spending will translate into meaningful returns.
Amazon’s results followed a disappointing earnings report from Alphabet earlier this week. Shares of the Google parent fell 12% during Thursday’s regular trading session after its third-quarter earnings and revenue missed analyst expectations. The company also reported negative free cash flow of $9.07 billion.
Alphabet’s decline dragged the Nasdaq Composite down 1.4% on Thursday, while the S&P 500 ended the session 0.3% lower.
Friday marks the final trading session of October, a month marked by volatility in technology stocks as investors assessed the rising costs of AI investments and corporate earnings.
In Asia, Japan’s Nikkei 225 ended 2.12% lower on Friday, while South Korea’s Kospi declined 3.48%. China’s CSI 300 fell 1.39%.
Australia’s S&P/ASX 200 bucked the broader trend, closing 0.18% higher.
US stock market today: Nasdaq falls over 2%, S&P 500 slides as Amazon, Intel tumble