Wall Street drops to worst day since June after tech stocks sell-off deepens

Wall Street experienced its largest decline since June due to a sharp sell-off in tech stocks. This followed concerns that the frenzy around artificial intelligence (AI) technology had driven prices too high. Intel's stock plummeted by 28.6%, marking its worst drop since 1974. The S&P 500 fell by 1.8%, its worst day since June, as it ended a third consecutive losing week.

The Nasdaq composite dropped a market-leading 2.9%, while the Dow Jones Industrial Average decreased by 572 points, or 1.1%. The US stock market, currently 3.1% below its all-time high, has become increasingly volatile as midterm elections approach. Worries about AI have become a concern for voters across political parties, with President Donald Trump using stock market performance as a gauge of his success.

Intel's stock led the drop, plunging 28.6% for its worst decline since 1974. Despite reporting stronger-than-expected profits for the quarter, CEO Lip-Bu Tan cited ongoing pressure in the personal-computer industry. Amazon declined by 1.4% after posting weaker summer profits than anticipated, revealing it had depleted $42.4 billion of cash over the past year, primarily in AI investments.

Alphabet's stock dropped over 12%, its worst day ever, as it also reported hefty AI-related cash burn. Nvidia, the leading AI chip company, saw its stock fall 4.2%, the primary driver of the S&P 500's decline. Meanwhile, the cryptocurrency market suffered following a hack on Binance, a major crypto exchange. Bitcoin's price fell below $77,000 from over $86,000 earlier in the month, and a US-based firm linked the attack to North Korea.

Coinbase Global dropped 10.6%, despite reporting stronger-than-expected Q3 profits and announcing its COO will resign for personal reasons. European indexes were mixed, with South Korea's Kospi down 3.5% due to AI concerns and Hong Kong's Hang Seng up 1.5%. Japan's Nikkei 225 declined 2.1% after the Bank of Japan left interest rates unchanged, similar to the Federal Reserve and European Central Bank's decisions.