technology ·
Tech stocks fall sharply Friday, Nasdaq posts worst day since June
Shares in major technology firms led to a significant downturn across U.S. stock markets on Friday.
The Nasdaq experienced its most substantial decline since June, driven by underwhelming financial results from prominent tech players, which reignited investor worries regarding the substantial expenditures related to artificial intelligence.
CNBC indicated that the S&P 500 declined by 1.8%, the Dow Jones Industrial Average shed 579 points, equating to a 1.1% loss, and the Nasdaq Composite retreated by 2.8%.
The market sell-off followed reports from Alphabet's parent company, alongside Amazon and Intel, whose earnings figures sparked investor apprehension concerning the expenses associated with advancing AI technology.
Amazon stock saw a nearly 6% decrease after the firm released its third-quarter performance, which did not meet Wall Street's projections. Furthermore, the company disclosed a negative free cash flow amounting to $42.4 billion and confirmed its projected capital spending for 2026 at $220 billion.
Intel shares plummeted by over 5% subsequent to the chip manufacturer's caution about softening demand for personal computers. This company also announced a 5% reduction in revenue generated by its client computing and physical AI segment.
Other firms in the semiconductor industry also experienced declines; specifically, Advanced Micro Devices dropped 11%, Broadcom fell by 5%, and Nvidia lost 4%.
Alphabet's stock continued its downward trend on Friday, having already seen a 1.2% dip on Thursday following its earnings announcement. The corporation has been under increasing examination regarding its outlay for AI infrastructure.
