Nasdaq sinks 2.86% as AI spending worries deepen the tech selloff
Friday, October 30: the completed cash-market close, a divided earnings picture and the policy debate heading into the weekend.
U.S. stocks closed sharply lower Friday as disappointing technology results renewed concerns about the cash cost and eventual returns of the artificial-intelligence buildout. The Nasdaq Composite fell 2.86%, while the S&P 500 lost 1.82% and the Dow Jones Industrial Average declined 1.09%.
The close
| Index | Close | Day |
|---|---|---|
| S&P 500 | 7,580.07 | -1.82% |
| Nasdaq Composite | 25,437.00 | -2.86% |
| Dow Jones Industrial Average | 51,770.31 | -1.09% |
These are Friday's completed regular-session closes, checked against CNBC, the Associated Press and Yahoo Finance. They are not the deeper losses reported during afternoon trading or after-hours prices. Both the Nasdaq and S&P 500 had their worst day since June, according to CNBC and AP.
What moved and why
The AI spending test intensified. Intel fell 28.6% after its outlook disappointed investors despite a stronger-than-expected quarterly profit. Amazon fell 1.4% as its results and negative trailing free cash flow reinforced questions about the cost of AI investment. Nvidia lost 4.2%, making it a major weight on the S&P 500. CNBC and AP tied the selloff to doubts about the payoff from large technology investments.
The completed quarter and the next-quarter outlook can point in different directions. The market's reaction does not erase growth already reported, but strong demand does not guarantee that spending will produce the returns investors expect. Our earlier cash-market report covered the selloff while the session was still in progress.
Other earnings told a different story. ExxonMobil rose 2.2% and Chevron added 1.8% after stronger-than-expected profits. CNBC and AP reported strength in the energy companies as technology shares fell. Our oil-major results report has the refining backdrop. Elsewhere, Capri returned to profit and raised its outlook even though overall sales fell.
Policy remained a live debate, not a fresh decision. Alberto Musalem argued that additional tightening was needed soon, while Lorie Logan favored at least two more quarter-point increases under her current outlook. Their speeches did not change the FOMC's 3.75%-4% target range. Our Fed speeches report explains the conditions and the distinction between individual views and committee policy.
What to watch next
For AI-related results, keep demand, cash flow, investment spending and financing separate. A company can report growing revenue while spending more cash than it brings in. A lower share price is a market judgment about the outlook, not proof that every project has failed.
In crypto, watch operational recovery rather than assuming a pledge to cover losses has restored normal access. Binance's withdrawal restart remains dependent on security testing after the exchange identified more breach points. Our Binance report separates the company's commitments from completed recovery.
Today's Chain, Crude & Chips covers oil supply risks, the crypto snapshot and the pressure on chip stocks.
