Wall Street closed out October in the red on Friday as fresh evidence of Big Tech’s runaway AI spending spooked investors. The Nasdaq Composite plunged 2.86% to 25,437.00 — its biggest one-day percentage fall since June 5 — while the S&P 500 slid 1.82% to 7,580.07 and the Dow Jones Industrial Average dropped 1.09% to 51,770.31.
The trigger was a brutal reaction to earnings. Intel shares cratered 28.6%, the chipmaker’s worst day since 1974, after its results revived fears that the industry’s colossal AI buildout is outpacing actual returns. Nvidia fell 4.2% and AMD sank 10.9%, dragging the semiconductor index down 7.2% on the day — the sector’s losses now exceed 15% for the month. Dell and HP shed more than 9% each. The Nasdaq is now down 7.8% from its record close on October 6, and October could erase more than $2 trillion from the Nasdaq 100, according to Reuters estimates.
Behind the selloff is a deeper question about capital allocation. Microsoft, Alphabet, Amazon, Meta and Oracle together devoted just 9.3% of operating cash flow to dividends and share buybacks in the first nine months of 2026 — down from 27.4% a year earlier and a 15-year low. Capital spending doubled to $556.9 billion, while buybacks were slashed 83% to $13.6 billion; Alphabet and Meta made zero repurchases in 2026 after spending $66.5 billion on them in the same period last year. Amazon alone reported third-quarter capital expenditure of $75.9 billion against $42.4 billion in operating cash flow, and raised $48.1 billion in new long-term debt.
The damage was not confined to stocks. Crypto-linked shares tumbled on news of a $6.3 billion Binance hack, with Coinbase, Strategy and Robinhood falling between 7.2% and 10.6%. One bright spot for anxious investors: 82% of the 299 S&P 500 companies that had reported still beat earnings estimates. But the market’s message was clear — it no longer wants promises about the AI future without proof it pays.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.