US stocks fell sharply on Friday, October 30, as disappointing corporate results intensified concern about the cost of artificial intelligence investment. Reuters linked the New York sell-off to Intel and Amazon earnings, while CNN reported the worst day since June for both the Nasdaq and S&P 500.
The Nasdaq Composite lost 2.86% and the S&P 500 dropped 1.82%, according to CNN. AP put the S&P closing level at 7,580.07, down 140.32 points. Reuters said the Nasdaq finished 7.8% below its October 6 record close, erasing part of this year's technology-led rally.
Intel shares plunged 28.6%, their worst drop since 1974, according to AP, after a profit forecast below analysts' expectations. In its Thursday release, the chipmaker projected fourth-quarter revenue of $15 billion to $16 billion and adjusted earnings of $0.25 per share, compared with $0.52 in the third quarter.
Intel reported third-quarter revenue of $16.5 billion, up 21% from a year earlier. Finance chief David Zinsner said the personal-computer slowdown would persist at least through the first half of 2027. Chief executive Lip-Bu Tan nevertheless described processor demand as robust and said expanding Xeon supply was an immediate priority.
The pressure extended beyond Intel. Reuters reported declines of about 29% for Reddit and 13% for Sandisk. Citing Capital Economics, it said four major cloud groups accounted for more than a third of capital spending by current S&P 500 constituents over the past year, highlighting the scale of AI investment.
Investors now face another week of major tests. Reuters identified US midterm elections, earnings from Apple, AMD and Palantir, and Friday's October employment report as upcoming events. Those releases will provide further evidence on corporate performance and the economy after the latest retreat in technology stocks.
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