Tech sell-off drives US markets down by nearly $1tn after subpar earnings reports
News Source
β’Fri, 30 Oct 2026 18:27:51 GMT
π° What Happened
A sell-off in technology stocks drove US markets sharply lower on Friday, with the Nasdaq composite falling more than 3 percent and the S&P 500 losing more than 1 percent, erasing hundreds of billions of dollars in value. The decline took nearly $1 trillion off the Nasdaq in a week and about $2 trillion in a month, putting the index on course to lose more than 5.8 percent in October despite setting an all-time high during the same month.
π The Backstory
The move began earlier in October and accelerated with disappointing earnings from leading technology companies, including Amazon and Intel, which worsened fears about the sustainability of the AI boom. Investors are questioning whether the billions being poured into AI infrastructure can generate returns quickly enough, and the Nasdaq 100 fell 4.2 percent in afternoon trading after reports that Anthropic may not receive an investment-grade credit rating.
π― Why It Matters
The concentration of US market value in a handful of AI-linked companies means a reassessment of AI spending translates directly into household wealth and pension performance. A month that began at record highs ending in a $2 trillion drawdown also complicates the picture for companies trying to raise debt for data centres.
A sell-off in technology stocks drove US markets sharply lower on Friday, with the Nasdaq composite falling more than 3 percent and the S&P 500 losing more than 1 percent, erasing hundreds of billions of dollars in value. The decline took nearly $1 trillion off the Nasdaq in a week and about $2 trillion in a month, putting the index on course to lose more than 5.8 percent in October despite setting an all-time high during the same month.
The move began earlier in October and accelerated with disappointing earnings from leading technology companies, including Amazon and Intel, which worsened fears about the sustainability of the AI boom. Investors are questioning whether the billions being poured into AI infrastructure can generate returns quickly enough, and the Nasdaq 100 fell 4.2 percent in afternoon trading after reports that Anthropic may not receive an investment-grade credit rating.
The concentration of US market value in a handful of AI-linked companies means a reassessment of AI spending translates directly into household wealth and pension performance. A month that began at record highs ending in a $2 trillion drawdown also complicates the picture for companies trying to raise debt for data centres.