The Nasdaq Composite plunged 2.86% on Friday, marking its steepest single-day percentage decline since June 5, as disappointing quarterly results from Intel and Amazon intensified concerns over the enormous investments technology companies are making in artificial intelligence (AI) and how quickly they can generate returns.
The technology-heavy index shed 747.73 points to close at 25,437, while the S&P 500 dropped 1.82% to 7,580.07. The Dow Jones Industrial Average declined 572.25 points, or 1.09%, to settle at 51,770.31.
The Nasdaq has now fallen 7.8% from its record closing high of October 6, reflecting growing investor unease over the sustainability of the AI-driven rally. The S&P 500 and Nasdaq also ended October in the red, although the Dow managed to register a monthly gain.
The immediate trigger for Friday's selloff was a disappointing earnings-driven reaction to results from Intel and Amazon, released late Thursday. Intel shares crashed 28.6%, while semiconductor and server-making stocks faced heavy selling.
Nvidia declined 4.2%, Advanced Micro Devices (AMD) slumped 10.9%, and the broader semiconductor index shed 7.2%, taking its monthly losses beyond 15%. Server manufacturers Dell and HP fell 10.8% and 9.6%, respectively.