Nasdaq 100 drops 3.5% as AI spending fears hit Big Tech
What's new: Alphabet fell 13% and Intel sank 29%, while investors questioned whether huge AI budgets can pay off soon enough.
The Nasdaq 100 fell 3.5% on Oct. 30, capping its worst month since March 2025 as investors sold technology shares for a second straight day over concerns that heavy AI spending is colliding with weaker core businesses. The S&P 500 lost 1.8%. Alphabet led the retreat after its search and advertising results deepened worries about pressure on its main business, sending the stock down 13% in its biggest-ever drop. Intel plunged 29% after issuing a revenue forecast below analysts’ estimates. Amazon, Advanced Micro Devices, Nvidia and Dell Technologies also fell, while the Philadelphia Semiconductor Index slid 7.2%. The sell-off came as investors grew less willing to fund large capital spending plans without clearer returns and as Treasury yields pushed back toward 5%.