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The Nasdaq Composite fell 2.9% on Friday to 25,437, its steepest single-day decline since March 2025, as investors sold technology shares. Intel dropped 28.6% after its fourth-quarter forecast came in below Wall Street estimates, while Treasury yields fell as demand for government bonds rose.
U.S. stocks closed sharply lower Friday, with the Nasdaq Composite down 2.9% to 25,437 and Intel shares plunging 28.6% after the chipmaker issued a weaker-than-expected fourth-quarter outlook. The Nasdaq’s drop was its steepest one-day decline since March 2025, according to the market report, as selling spread across technology stocks amid concerns about artificial-intelligence spending and the returns companies may earn from it.
The decline began at the opening bell, when all three major U.S. equity indexes opened lower. The Nasdaq’s fall erased its modest gain for the week and left the index down 2% for the week. The S&P 500 slipped 1.8% to 7,580 on Friday and ended the week down 0.6%. The Dow Jones Industrial Average fell 1.1% to 51,770, bringing its weekly loss to 0.9%.
Intel was the S&P 500’s worst-performing stock after management reported mixed results and forecast fourth-quarter earnings of 25 cents a share on revenue of $15 billion to $16 billion. The report said analysts had expected earnings of 45 cents a share and revenue of $17.3 billion. Intel’s decline weighed on other chipmakers: Advanced Micro Devices fell 10.9%, and Nvidia lost 4.2%. AMD was scheduled to report quarterly results after Tuesday’s close.
Other large technology stocks also declined, though by less than Intel. Alphabet fell 1.4%, Amazon lost 1.4%, Microsoft slipped 1.6%, Meta Platforms dropped 1.5%, Tesla eased 0.9% and Apple fell 1.2%. The report noted mixed recent results among major technology companies: Alphabet had its weakest advertising revenue growth in five quarters, Amazon’s e-commerce sales growth slowed to a three-year low, and Microsoft reported stronger-than-expected Azure sales.
Tech Selling Hits Major Indexes
The broad market decline matters because technology and large-cap growth stocks have accounted for a substantial share of recent index performance. A selloff concentrated in those companies can pull down headline indexes even when other sectors hold up better. Friday’s losses also show how a disappointing outlook from a major chipmaker can weigh on investors’ view of the wider semiconductor and AI infrastructure trade.
Investor concern is focused on spending and profitability, rather than on a single earnings miss alone. LPL Financial Chief Cross-Asset Strategist Adam Turnquist said mega-cap stocks had faced increased selling pressure over the preceding two weeks as elevated AI-related spending and rising financing costs raised questions about the path to profitability. He also pointed to slowing growth in some hyperscalers’ core businesses. Those are market interpretations, not proof that AI investment will fail to generate returns.
Trading also showed movement toward perceived defensive assets. Treasury yields fell as bond prices rose, indicating demand for government debt during the equity selloff. The report said energy, consumer staples and health care stocks were among the areas investors sought, although individual shares in those sectors did not all rise.
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Earnings and AI Spending Concerns
The Nasdaq’s Friday loss came during a broader retreat from technology and AI infrastructure stocks. Turnquist said technical indicators for the Magnificent Seven were weakening: the group’s index had fallen below support near its May highs and was approaching another level. He described relative strength as being at a critical point, adding that further deterioration could indicate leadership was rotating away from mega-cap stocks. This is a strategist’s assessment of market conditions, not a confirmed change in the longer-term direction of shares.
Company results offered contrasting signals. Microsoft reported a stronger-than-expected contribution from Azure, while Alphabet and Amazon faced weaker growth measures in advertising and e-commerce, respectively. Apple was due to report fiscal fourth-quarter results after Monday’s market close. Turnquist said the company had outperformed during the month in part because it was more asset-light than peers and continued to generate strong free cash flow.
Outside equities, front-month West Texas Intermediate crude futures rose 2.4% to $104.45 a barrel, and Brent crude gained 1.5% to $112.44. The source linked the oil move to expectations that the Middle East war could intensify after U.S. midterm elections. Treasury yields declined: the two-year yield fell 6.4 basis points to 4.592%, the 10-year fell 5.8 basis points to 4.931%, and the 30-year slipped 1.9 basis points to 5.31%.
Whether Tech Selling Will Persist
It is not yet clear whether Friday’s decline marks a lasting shift away from mega-cap technology shares or a short-term reaction to earnings and valuation concerns. The source describes weakening technical indicators and investor worries about AI spending, but it does not establish how long the selling will continue or whether companies’ investments will ultimately produce the returns investors expect.
The supplied report does not state the calendar date of the Friday session, and its reference to events around U.S. midterm elections is not enough to establish that date. It also does not provide a confirmed account of the reported $6.3 billion Binance hack, which it said was attributed to North Korean government agents. That figure and attribution should be treated as claims in the source report rather than independently verified details here.
Friday’s index and stock figures describe that session, not subsequent market performance. The report does not include later trading, revisions to company forecasts, or the eventual results of the upcoming earnings releases and economic data.
Upcoming Earnings and Jobs Data
Investors were due to receive several fresh data points in the following days. Apple was scheduled to report fiscal fourth-quarter results after Monday’s close, while AMD was due to report third-quarter earnings after Tuesday’s close. Those releases could provide further evidence on demand, margins and company guidance across the technology sector.
The next scheduled U.S. employment report was the Bureau of Labor Statistics’ October update, set for release before the market opened the following Friday. The source said markets expected the report to show continuing stability. A separate near-term focus was Federal Reserve policy: Cleveland Fed President Beth Hammack, who dissented from the October decision to hold rates steady, was expected to speak the following Thursday. How investors respond will depend on the data and remarks as released; Friday’s market moves do not settle the outlook for interest rates or stocks.
Key Questions
How much did the Nasdaq fall Friday?
The Nasdaq Composite fell 2.9% to 25,437. The report described it as the index’s steepest single-day decline since March 2025.
Why did Intel shares drop?
Intel fell 28.6% after reporting mixed results and forecasting fourth-quarter earnings of 25 cents a share on revenue of $15 billion to $16 billion. The report said analysts had expected 45 cents a share and $17.3 billion in revenue.
Did the other major indexes also fall?
Yes. The S&P 500 fell 1.8% to 7,580, and the Dow dropped 1.1% to 51,770. Both indexes also ended the week lower.
What market events were scheduled next?
Apple was scheduled to report fiscal fourth-quarter results after Monday’s close, and AMD was due to report after Tuesday’s close. The October U.S. employment report was scheduled for release before the market opened the following Friday.
Source: kiplinger.com
