U.S. technology stocks closed October on a weak note as investors questioned whether the enormous spending commitments behind the artificial-intelligence boom would produce returns quickly enough. The Nasdaq Composite suffered its biggest daily decline since June on Friday, with selling concentrated in chipmakers and other technology names.
Large losses in closely watched stocks
Intel and Reddit each lost roughly 29% in Friday’s session, while Sandisk fell about 13%, according to Reuters. The Nasdaq Composite declined around 2.9% and the S&P 500 about 1.8%.
The session extended pressure already visible after earnings from Microsoft, Amazon, Alphabet and Meta. Although those businesses operate in different markets, investors have been increasingly focused on the scale of data-center and computing investments.
Why AI investment has become a concern
Major technology companies are spending heavily on chips, facilities, energy infrastructure and cloud systems. Such investment may support future growth, but the timing of revenue and earnings remains uncertain. Companies can face higher depreciation, financing and operational expenses before new capacity reaches full utilization.
That uncertainty has made market valuations particularly sensitive to forecasts and management statements. A weak quarterly outlook can trigger significant moves when expectations are already elevated.
The selloff reached beyond technology
The retreat also affected financial shares and precious metals, while Bitcoin weakened following news of a major security incident at Binance. Oil prices moved higher, adding to concerns that energy costs could complicate inflation policy.
Those moves do not prove a single cause for the market’s decline. They do show that risk appetite became weaker across several asset classes at the end of the month.
A crowded calendar ahead
Investors now face U.S. election-related developments, further corporate earnings and the next monthly jobs report. Each could influence expectations for economic growth, interest rates and company earnings.
The key question for the technology rally is whether companies can turn infrastructure investment into sustained cash flow. Friday’s declines highlighted growing uncertainty rather than delivering a final verdict on the sector’s prospects.
Sources: Reuters, October 30; Reuters, October 31.
