Nasdaq drops 2.9% as Intel, Amazon deepen AI spending sell-off
What's new: Intel sank 28.6%, chip stocks fell 7.2% and the Nasdaq ended October with its worst monthly slide since March 2025.
US stocks fell sharply Friday as weak results from Intel and Amazon intensified investor doubts about whether huge artificial intelligence spending will pay off. The Nasdaq dropped 2.9%, its biggest one-day percentage fall since June 5, while the S&P 500 lost 1.8% and the Dow fell 1.1%. Intel plunged 28.6% after forecasting weaker fourth-quarter revenue and signaling more AI investment despite cash pressure. Amazon also revealed heavy capital spending tied to AI infrastructure, though it trimmed deeper losses by the close. The broader chip index sank 7.2%, with Nvidia down 4.2% and AMD off 10.9%. The sell-off extended a broader retreat that began after Alphabet's revenue miss raised new concerns about AI cash burn.