A significant sell-off in artificial intelligence stocks accelerated on Friday, October 30, 2026, as investors grew concerned that the industry's debt-fueled spending spree no longer justified current share prices. The S&P 500 index fell more than 1 percent during early trading on the final session of the month, driven largely by steep declines in technology stocks. The tech-heavy Nasdaq index dropped more than 2 percent amid the downturn.
Specific companies faced severe pressure following disappointing financial reports. Intel shares plunged more than 25 percent after the chipmaker's results fell short of Wall Street expectations. Amazon's stock also declined by 3 percent after its earnings missed analysts' forecasts. Despite these losses in the technology sector, the broader market displayed notable resilience, supported by strength in energy and utilities sectors as well as companies selling everyday goods.
Shares of consumer staples companies rose 1.5 percent on Friday, while Exxon Mobil shares increased by 2 percent. These movements reflect a dynamic observed throughout October that has helped alleviate fears among some investors that a faltering AI trade would drag the entire market down. The data suggests growing investor confidence in sectors that had previously underperformed, indicating that capital is being redeployed within the stock market rather than fleeing it entirely.
The S&P 500 is currently on track to post a small loss for October, extending a modest 0.5 percent decline recorded in September. Despite the monthly setback, the index remains only slightly below its record high.
Sources: The New York Times Business.