Nasdaq futures sink as Amazon, Intel intensify AI spending fears

Nasdaq futures plummeted more than 2% on Friday as Amazon and Intel intensified concerns over AI spending, according to Reuters. The chipmaker warned of cash burn this year, while Amazon disclosed a sharp cash outflow in Q3 and plans for further capital expenditures. The drop in the index added to its $1.4 trillion loss this month, with Amazon and Intel potentially erasing $300 billion of combined market value.

Analysts warned that higher financing costs could hinder expansion and debt repayment. Other big tech companies also faced challenges, with Alphabet, Meta, Nvidia, and AMD all experiencing declines. Meanwhile, energy stocks Chevron and Exxon Mobil rose as they reported better-than-expected Q3 profits. Despite the AI trade's initial optimism, the broader market remained cautious, with the S&P 500 and Dow still poised for gains.