Sharp decline on Wall Street amid tech stock sell-off
U.S. stock markets experienced their worst day since June, driven by growing skepticism regarding the profitability of artificial intelligence investments and heavy selling pressure on tech stocks. The S&P 500 index fell 1.8%, marking its third consecutive weekly loss.
On Friday, October 30, 2026, Wall Street faced a sharp sell-off led by technology stocks. Investors' concerns over whether high capital expenditures on artificial intelligence projects will translate into tangible profitability were interpreted as a signal of the market shifting from a period of 'hope' to a period of 'proof'.
The S&P 500 index closed down 140.32 points at 7,580.07, while the Nasdaq index fell 747.73 points to 25,437.00. The Dow Jones Industrial Average dropped 572.25 points to 51,770.31. This decline in the technology sector was deepened by Intel, which suffered its largest daily drop since 1974 (28.6%) due to weak earnings guidance.
Alphabet shares lost over 12% due to high AI spending, while Nvidia fell 4.2% and Amazon dropped 1.4%. It was noted that Amazon spent $94.8 billion on AI-focused equipment and property over the last 12 months. In contrast, non-tech sector companies such as ExxonMobil, Chevron, Mondelez International, and Colgate-Palmolive reported results that exceeded expectations.
The general selling pressure in the markets also reflected on the cryptocurrency market; Bitcoin fell below $77,000 following allegations of a cyberattack on the Binance exchange. As investors turned to the bond market in search of a safe haven, the yield on the 10-year U.S. Treasury note pulled back to 4.93%. In global markets, South Korea's Kospi fell 3.5% and Japan's Nikkei 225 dropped 2.1%, while Hong Kong's Hang Seng index rose 1.5%.