NEW YORK, October 31 (ANI) — U.S. stocks ended sharply lower Friday, with the Nasdaq Composite recording its biggest one-day percentage decline since June 5, as disappointing quarterly results from Intel and Amazon intensified concerns about technology companies’ massive investments in artificial intelligence and how long it may take them to generate returns, according to a Reuters report.
The Nasdaq fell 2.86% to close at 25,437.00, while the S&P 500 declined 1.82% to 7,580.07. The Dow Jones Industrial Average dropped 1.09% to 51,770.31.
The technology-heavy Nasdaq has fallen 7.8% from its record closing high, reached on October 6. The selloff followed quarterly results released by Intel and Amazon late Thursday, which raised concerns about the outlook for companies investing heavily in AI.
Intel shares plunged 28.6%, while chipmakers also suffered sharp declines. Nvidia fell 4.2%, and AMD dropped 10.9%. The broader semiconductor index declined 7.2%, taking its monthly losses to more than 15%.
Server manufacturers Dell and HP also came under pressure, falling 10.8% and 9.6%, respectively.
“It’s fair to say that this week, not just today, has been very much about the future of AI and what that’s going to look like, whether there will be a positive return on investment and if so, how quickly,” Oliver Pursche, senior vice president at Wealthspire Advisors in New York, told Reuters.
He said companies meeting high market expectations were performing well, while those falling short were facing sharp punishment from investors.
The broader technology sector of the S&P 500 recorded its biggest monthly percentage decline since March 2025, while the communication services sector registered its steepest monthly fall since April 2022.
Despite the market weakness, the broader earnings season remained positive. Of the 299 S&P 500 companies that had reported third-quarter results, 82% had beaten consensus estimates, according to LSEG data cited by Reuters. Analysts were expecting third-quarter earnings growth of 31.6% year over year.
Meanwhile, cryptocurrency-related stocks also declined following reports that hackers had stolen $6.3 billion from Binance. Coinbase, Strategy and Robinhood fell between 7.2% and 10.6%.
All three major U.S. indexes closed lower for the week, while the S&P 500 and Nasdaq also recorded monthly losses. (ANI)
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