US equities fell sharply on Friday, led by a broad selloff in technology shares. The S&P 500 dropped 2%, the Nasdaq sank about 4%, and the Dow Jones Industrial Average declined more than 500 points after a series of disappointing tech earnings.
Intel plunged more than 30% after issuing guidance that came in below expectations. Amazon slipped 1.7% following results that missed estimates and an announcement of higher capital expenditures. Growing signs of a slowdown in AI-related revenue have intensified questions about the sustainability of AI demand and whether the substantial capital being deployed into the sector will ultimately deliver adequate returns.
Semiconductor stocks were hit hard: AMD fell 12%, Broadcom lost 6.5%, and Micron declined 7%. Among the major cloud providers, Alphabet extended its recent slide, losing another 2% after a previous 12.6% drop.
In contrast, energy names outperformed. ExxonMobil rose 1% and Chevron gained 1.5%, with both companies beating third-quarter earnings forecasts.
On a weekly basis, the S&P 500 fell 1%, the Nasdaq lost 3%, and the Dow declined about 500 points. For the month, the S&P 500 slipped 1%, the Nasdaq dropped 7%, while the Dow managed a 2% gain.
