US stocks fell sharply in early trading on Friday, October 30, as disappointing results from Amazon and a weak outlook from Intel deepened a sell-off driven by doubts over the returns on massive artificial intelligence spending.
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The Nasdaq Composite fell 2.44% at the open, while the S&P 500 dropped 1.3% and the Dow Jones Industrial Average was down 175 points, according to Invezz’s market-open report. The figures are early-trading levels on the final session of October, not closing prices, and they moved during the session.
The slide was the second day of heavy tech selling. On Thursday, Alphabet — Google’s parent — suffered its worst day on record, falling about 12-13% after earnings missed expectations, wiping roughly $500 billion from its market value and dragging the Nasdaq 100 down 1.4%.
Intel’s outlook shocks the chip sector
Intel was the session’s standout faller. Its shares plunged more than 29% in early trading after the chipmaker issued a fourth-quarter outlook well below analysts’ expectations, citing weak PC demand and manufacturing bottlenecks for its data-centre components.
Intel had reported third-quarter revenue of $16.51 billion and adjusted earnings of 52 cents a share, but its client computing revenue fell 5% year on year to $8.1 billion. The weak guidance pulled the wider chip sector down with it: Advanced Micro Devices fell about 9%, Nvidia about 3.3%, and Dell about 8.3%, while the Philadelphia Semiconductor Index fell 5.7%.
Amazon’s spending — and its miss — worry investors
Amazon shares fell around 4.4% in early trading, after falling about 7% in premarket trading, following third-quarter results that missed Wall Street expectations. Revenue was $201.9 billion against an expected $202.2 billion, and adjusted earnings were $1.89 a share against an expected $1.97.
What unsettled investors more than the miss was the spending. Amazon maintained a capital expenditure forecast of approximately $220 billion for 2026, and reported negative free cash flow of $42.4 billion over the trailing 12 months, against positive cash flow of $14.8 billion a year earlier. For a market already asking whether AI investment will pay off quickly enough, that combination — higher spending, slower cash generation — was the trigger.
A broader question about the AI trade
The sell-off is, at its core, a repricing of the AI boom rather than a verdict on AI itself. Investors are no longer rewarding spending alone; they want evidence that data centres, chips and models translate into profit, and at a pace that justifies current valuations.
That scrutiny has been building all month. The Nasdaq Composite was heading for a decline of about 2.5% for October, potentially ending a two-month winning streak, even as the S&P 500 was on track to gain about 0.9% and the Dow about 2.8% for the month. The divergence — tech falling while most of the broader market held up, with around 400 S&P 500 stocks positive on Thursday — suggests a rotation out of crowded AI names rather than a broad market panic, at least so far.
What to watch
Traders will now watch whether Friday’s weakness spreads beyond technology, whether the session’s closing levels confirm or soften the early falls, and what the next round of Big Tech results and guidance says about AI capital spending for 2027. The October close also sets the tone for November: a month that began with AI optimism is ending with investors demanding proof.
Frequently asked questions
Why did US stocks fall on October 30?
Amazon’s earnings miss and heavy AI spending plans, plus Intel’s weak fourth-quarter outlook, reignited concerns that Big Tech’s AI investments may not deliver returns quickly enough — a day after Alphabet’s record fall.
How far did the Nasdaq fall?
The Nasdaq Composite fell 2.44% in early trading on Friday, with the S&P 500 down 1.3%. These were early-session levels, not closing prices.
Is this a broad market crash?
Not on Thursday’s evidence: around 400 S&P 500 stocks were positive even as the Nasdaq fell, pointing to a tech-led rotation rather than a market-wide collapse. Friday’s close will clarify how broad the selling became.
Sources
- Invezz: https://invezz.com/news/2026/10/30/nasdaq-opens-2-lower-as-amazon-and-intel-selloff-deepens-ai-spending-concerns/
- CNN: https://www.cnn.com/2026/10/30/investing/us-stocks-ai-investment?cid=external-feeds_iluminar_meta
- The Edge Singapore (Bloomberg): https://www.theedgesingapore.com/news/us-stocks/tech-stocks-tumble-amazon-adds-ai-spending-fears
- Investor’s Business Daily: https://www.investors.com/market-trend/stock-market-today/dow-jones-sp500-nasdaq-amazon-stock-intel-stock/
