Wall Street closes sharply lower amid AI cash burn
Disappointing quarterly results from Intel and Amazon, which heightened concerns over heavy AI spending, triggered a tech selloff.
On Friday, US stocks plummeted as the Nasdaq experienced its steepest one-day percentage decline since June 5, following poor quarterly results from Intel and Amazon. The tech-heavy Nasdaq index declined by 2.9%, marking a 7.8% drop from its October 6 all-time closing high. Intel's shares plummeted 28.6%, while Nvidia fell 4.2% and AMD plunged 10.9%, reflecting growing concerns over AI-related companies' excessive spending on the nascent technology.
All three major US stock indexes slipped, with the S&P 500 and Nasdaq both recording monthly losses, while the Dow emerged from October with a slight gain. The tech sector of the S&P 500 witnessed its most significant monthly percentage loss since March 2025, and communication services recorded their biggest monthly decline since April 2022.
Despite the overall market downturn, some companies outperformed expectations, such as Exxon Mobil and Chevron, benefiting from soaring profit margins due to energy supply disruptions caused by the US-Israeli conflict with Iran and Russia's war in Ukraine.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Wall Street closes sharply lower amid AI cash burn freemalaysiatoday.com
