Tech Stocks Sell Off as AI Spending Concerns Weigh on Markets

Oct 31, 2026 07:04 (7h ago)

U.S. technology stocks fell as earnings, AI infrastructure spending and monetary-policy uncertainty pressured investor sentiment.
Alphabet dropped nearly 13%, Intel declined 45.3% during October’s semiconductor selloff, while Microsoft reported 48% Azure growth.
Retail investors discussed Alphabet, Amazon, Intel, Reddit and Microsoft on X and Reddit’s r/WallStreetBets amid earnings and corporate news.

U.S. stocks ended the week of Oct. 26-30 lower as disappointing technology earnings, questions about the returns from artificial-intelligence spending and uncertainty over Federal Reserve policy weighed on sentiment. The S&P 500 fell 0.6%, the Nasdaq Composite dropped 2% and the Dow Jones Industrial Average declined 0.9%. Alphabet fell nearly 13% for its worst weekly performance since 2011 after earnings raised concerns about heavy AI spending and slowing search advertising growth, while Amazon faced scrutiny over AI investment and cash flow. Retail investors on X and Reddit’s r/WallStreetBets also focused on Intel, Reddit and Microsoft. Amazon Web Services revenue grew 39% to $46 billion, Microsoft reported 48% Azure growth, and Intel sold off despite beating earnings estimates. Carvana and Rivian posted strong quarterly revenue and vehicle-sales results, while Lumentum surged on reports of potential acquisition talks with Marvell. Twilio beat quarterly expectations but its shares fell, and Brent crude rose above $117 a barrel as investors monitored inflation, energy prices and geopolitical tensions.