US technology shares closed a bruising October with another sharp sell-off on Friday, as investors questioned whether the huge sums being poured into artificial intelligence will pay off quickly enough.
Reuters reported that the Nasdaq Composite recorded its biggest decline since June on Friday. The Nasdaq 100 fell 3.5 percent, putting it on the brink of a correction, and the Nasdaq Composite was down 7.8 percent from its closing high after its worst month since March 2025.
Chipmaker Intel fell 29 percent on Friday, while social media firm Reddit also fell 29 percent and chipmaker Sandisk dropped 13 percent. Microsoft, Meta, Amazon and Google parent Alphabet each fell 1 to 2 percent on Friday, following significant declines earlier in the week.
Reuters also reported that more than $2 trillion in market value was set to be wiped from the Nasdaq 100 during October, as the index had fallen more than 5.8 percent in the month. Big Tech earnings intensified scrutiny of whether AI spending can generate returns quickly enough, with Meta, Alphabet and Amazon raising spending forecasts further.
The four largest so-called hyperscalers have together accounted for more than a third of all capital spending by current S&P 500 constituents over the past 12 months, according to Capital Economics, cited by Reuters. Morgan Stanley forecast that capital spending on AI infrastructure overall will surpass a trillion dollars next year, while J.P. Morgan expects global AI capital expenditure to reach $900 billion in 2026 and $5.5 trillion by 2030.
Source: Reuters — https://www.reuters.com/legal/legalindustry/october-ends-with-thud-intel-reddit-ai-stalwarts-2026-10-30/ and https://www.reuters.com/business/media-telecom/nasdaq-faces-2-trillion-wipeout-october-ai-spending-fears-deepen-2026-10-30/
