The sell-off for tech stocks worsens and overwhelms Wall Street

A severe sell-off of tech stocks is intensifying on Friday, dragging down the U.S. market once again. Intel and Amazon have been among the leading contributors to this decline. The S&P 500 experienced a 1.6% drop and is on track to wipe out its October gain, despite hitting its highest point during the month. The Nasdaq composite followed suit, falling 2.5% by 11:48 a.m. Eastern time. The Dow Jones Industrial Average declined 0.7%, or 380 points, though to a lesser extent.

Intel's shares plummeted by 28.6%, and the company is on the verge of its worst trading day since 1974. Despite reporting stronger-than-expected profits for the latest quarter, Intel's earnings guidance for the final three months of the year fell significantly short of analysts' expectations. This performance was attributed to ongoing pressure in the personal-computer industry, negatively impacting demand for Intel's processors. Intel's CEO, Lip-Bu Tan, acknowledged this pressure, which further dampened investor confidence.

Amazon's stock also suffered, falling by 1.9% after the company reported weaker-than-expected profits for the summer period. More alarmingly, Amazon disclosed that it had exhausted $42.4 billion of its cash reserves, raising concerns among investors about the company's financial health and future prospects.