US stocks fell sharply on Friday as weak results from Intel and Amazon raised fresh concerns about the cost of artificial intelligence. Investors questioned whether heavy spending on AI technology would bring enough profit to justify the huge costs. The Nasdaq suffered its biggest one-day percentage loss since June 5.
All three major US stock indexes ended lower. The Nasdaq Composite fell 2.86% to 25,437.00. The S&P 500 dropped 1.82% to 7,580.07, while the Dow Jones Industrial Average lost 572.25 points, or 1.09%, to close at 51,770.31.
The sell-off added to pressure on technology shares. The Nasdaq has fallen 7.8% from its record closing high on October 6. The S&P 500 and Nasdaq also recorded monthly losses, while the Dow finished October with a gain.
Intel shares suffered one of the day’s largest falls. The chipmaker’s stock plunged 28.6% after its latest quarterly results raised concerns about its outlook. Amazon shares also came under pressure after the company gave a weaker-than-expected sales forecast for the fourth quarter. Amazon’s losses eased as the trading session went on.
The results added to wider worries about companies investing large sums in AI systems, data centers and computer chips. Investors have pushed technology stocks higher in recent years on hopes that AI will drive strong growth. However, they are now paying closer attention to whether these investments can deliver lasting profits.
Oliver Pursche, a senior vice president at Wealthspire Advisors in New York, said the week’s trading had focused on the future of AI and the returns companies might earn from the technology. He said investors were also asking how long it would take for firms to recover their spending.
Pursche added that companies meeting high market expectations were performing well. Firms that missed targets or failed to deliver the results investors expected faced sharp falls in their share prices.
Chip stocks were among the hardest hit on Friday. Nvidia fell 4.2%, while Advanced Micro Devices dropped 10.9%. The broader semiconductor index lost 7.2%, leaving it down more than 15% for October.
The pressure also spread to companies that make computer servers and related equipment. Dell shares fell 10.8%, while HP dropped 9.6%. These companies are closely tied to demand for computers, servers and data center equipment, all of which play a role in the growth of AI services.
The decline in technology shares weighed on the wider market. The technology sector of the S&P 500 recorded its largest monthly percentage loss since March 2025. The communication services sector posted its biggest monthly decline since April 2022.
Despite Friday’s losses, many companies have reported strong earnings this quarter. The third-quarter reporting season has passed its halfway point, with 299 S&P 500 companies having released results. About 82% of those firms reported earnings above market expectations, according to data from LSEG.
Analysts now expect earnings across the S&P 500 to grow 31.6% from the same period last year. This suggests that corporate profits remain strong overall, even as investors become more selective about which companies deserve high stock prices.
Some major energy companies moved against the wider market trend. Exxon Mobil gained 2.2%, while Chevron rose 2.8%. Both companies reported quarterly profits above expectations. Higher refining margins linked to energy supply disruptions helped support their results.
The disruptions have been linked to the US-Israeli war with Iran and Russia’s war in Ukraine. These conflicts have affected energy supply and helped lift profits in parts of the oil industry.
Starbucks shares fell 1.8% after the coffee chain forecast a decline in annual revenue. The outlook reflected its decision to sell its Chinese business.
Cryptocurrency-related stocks also suffered heavy losses. Coinbase, Strategy and Robinhood fell between 7.2% and 10.6%. The declines followed reports of a major security incident involving Binance, the world’s largest cryptocurrency exchange, and claims that hackers stole $6.3 billion. The reports added to concerns about security and risk in the digital asset market.
Market data showed that falling stocks greatly outnumbered rising shares. On the New York Stock Exchange, declining stocks outnumbered advancing ones by a ratio of 1.8 to 1. The Nasdaq saw an even wider gap, with declining shares outnumbering gainers by about 3 to 1.
Trading volume also rose above its recent average. US exchanges recorded 19.87 billion shares traded, compared with the 20-day average of 17.26 billion.
Friday’s sell-off showed that investors remain cautious about high technology valuations and the cost of AI development. As more companies report results, markets will focus on whether strong spending can turn into reliable earnings and long-term growth.
