Nasdaq Drops 2.9% as AI Spending Fears Trigger Worst Day Since June
Updated
Updated · The New York Times · Oct 31
Nasdaq Drops 2.9% as AI Spending Fears Trigger Worst Day Since June
3 articles · Updated · The New York Times · Oct 31
Summary
A debt-fueled AI sell-off slammed U.S. equities on Friday, sending the S&P 500 down 1.8% and the Nasdaq to their worst one-day losses since June.
Intel led the damage, plunging 29.2% after results missed Wall Street expectations, while the Philadelphia Semiconductor Index sank 7.2% and shares of Nvidia and Amazon also fell.
The slide reflected growing investor doubt that heavy AI spending still justifies lofty tech valuations, extending pressure already building around disappointing big-tech earnings.
Even so, money rotated rather than fled: energy rose 1.9% and consumer staples gained 1.4%, leaving the S&P 500 down only 0.9% for October and still near its record high.