Tech Stocks Fall 6.7% in October on AI Fears
Fears that AI spending will not pay off cut the Nasdaq 100 by 6.7% in October, with South Korea's chip-heavy market hit hardest. The post Tech Stocks Fall 6.7% in October on AI Fears appeared first on The Rio Times .
Artificial intelligence fears caused a 6.7% decline in tech stocks across the globe during October, according to wire reports. The Nasdaq 100, which follows the largest non-financial companies on the Nasdaq exchange, lost 6.7% for the month. Investors from New York to Seoul felt the effects as they doubted record spending on AI would yield profits soon.
Brazilian investors, holding tech-heavy portfolios, also experienced the drop. The Nasdaq 100 closed at 28,385 points on October 30th, down 3.46% for the day and 6.65% for the month. The S&P 500, a broader tech-heavy index, fell 1.82% to 7,580, sitting 3.1% below its high on October 6th. For the entire month, the S&P 500 only lost 0.9%, highlighting the concentration of losses in the tech sector.
South Korea's Kospi, the main stock index in Seoul, fell 16.2% in October, closing at 5,730 points on October 30th, down 3.5% on the day. Alphabet, the owner of Google, reported third-quarter results on Wednesday, October 28th, with revenue up 25% to $127.6 billion, but net losses of $9.1 billion due to heavy capital spending on AI.
Interest rates added pressure, with the US Federal Reserve holding its rate at 3.75%-4.00% on October 28th, with two officials voicing support for a quarter-point increase. The debate over AI spending's viability centers on whether the cost of such investments can be justified by future profits. Some investors fear an "AI bubble" burst, with Polymarket giving a 8.1% chance of such an event occurring in 2026.
The AI-linked giants in the Nasdaq 100 are influential, and their moves significantly impact the index.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
