The Nasdaq Composite fell sharply on Friday, down 2.2%, as investors pulled back from technology stocks following disappointing earnings reports from major players like Amazon and Intel. Meanwhile, the Dow Jones Industrial Average experienced a smaller dip of 0.3%, equivalent to 155 points, as traders gravitated toward more defensive sectors.
Amazon's shares dropped 5% after the company reported third-quarter earnings and revenue that missed Wall Street expectations. The tech giant also posted a negative free cash flow of $42.4 billion, with its capital expenditures forecast remaining at $220 billion for 2026. Intel faced a similar fate. Its stock slid 2.6% due to a gloomy forecast for the current quarter, impacted by a slowdown in PC sales. Revenue from its client computing and physical artificial intelligence group decreased by 5% to $8.1 billion from the previous year.
Chipmakers felt the sting of the sell-off. Advanced Micro Devices tumbled 10%, while Nvidia and Broadcom fell 3% and 4%, respectively. Sandisk, despite exceeding fiscal first-quarter projections, saw its shares decline 9%. As tech stocks fell out of favor, sectors such as consumer staples and healthcare gained traction. Companies like Procter & Gamble, Walmart, and Coca-Cola each saw their stocks increase by around 2%.
JPMorgan traders, in a note released Friday, highlighted ongoing concerns regarding AI monetization, suggesting that the shift away from tech may continue to impact broader indices. The tech sector's struggles were underscored by Alphabet's recent difficulties, as the company endured its worst trading day on Thursday after missing earnings and revenue forecasts. This contributed to a negative free cash flow of $9.07 billion.
As October comes to a close, the Nasdaq Composite is on pace for a nearly 5% decline for the month. The S&P 500 is projected to fall by 0.4%, while the Dow is expected to gain more than 2%. It has been a turbulent month for AI-related stocks, with investors closely monitoring infrastructure development expenditures. Companies such as Alphabet and Microsoft have not raised their capital expenditures forecasts, while neocloud firms face scrutiny over debt levels.
CoreWeave exemplifies this, with its bond yields surging and shares dropping over 36% this month. Nebius is also faltering, down 32% for October. The Roundhill Memory ETF, which includes AI memory companies like Micron and Seagate Technology, has decreased 14% in October, while the iShares A. I. Innovation and Tech Active ETF is down 10%.
Gold and silver prices have reached their lowest levels since November 2025. Gold futures dropped to a low of $3,946, and silver futures hit a low of $49.66. Meanwhile, the 2-year Treasury note yield slipped below the 50-day moving average of 4.609% for the first time since August.
Oil prices continued to rise, with U. S. West Texas Intermediate crude futures climbing 2% to $104.04 per barrel, and Brent crude futures increasing 2.3% to $117.50 a barrel. WTI is up about 15% and Brent over 13% month-to-date.
In Europe, natural gas prices surged past 100 euros, heightening concerns about winter price risks. Dutch Title Transfer Facility futures for December delivery rose 3.77% to 101.63 euros per megawatt-hour, marking a 35.75% increase for the month. BlackRock analysts cautioned that Europe's susceptibility to a colder winter is heightened, with natural gas storage at its lowest seasonal level since 2011.
European shares also suffered, with the pan-European Stoxx 600 down 0.3% in early trading. This was driven by a 1.9% drop in the technology index, following the global sell-off in tech stocks triggered by disappointing earnings from U. S. tech giants.
