Nasdaq Sinks 700 Points as Intel Plunges 29% on Tech Earnings Shock
Updated
Updated · CBS New York · Oct 30
Nasdaq Sinks 700 Points as Intel Plunges 29% on Tech Earnings Shock
3 articles · Updated · CBS New York · Oct 30
Summary
More than 700 Nasdaq points vanished Friday as a late-October tech rout accelerated, dragging the S&P 500 down 140 points and the Dow 572.
Intel's nearly 29% collapse—its worst single-day drop since 1974—joined Alphabet's ongoing slide after a 12% Thursday plunge and Nvidia's 4.2% fall to deepen the sell-off.
Weak earnings and guidance from major tech companies sharpened doubts that huge AI and data-center spending will deliver returns, especially as rising financing costs pressure profitability.
Federal Reserve rate-hike expectations added to the strain by threatening higher borrowing costs for AI infrastructure, even as UBS urged investors earlier this week to diversify beyond AI.
U.S. stocks still sit just 3.4% below record highs, but the pullback is testing confidence in the AI-led rally that had powered markets for much of the year.