U.S. technology stocks drove a broader market decline Friday as quarterly reports revived investor questions about whether heavy artificial-intelligence infrastructure costs can earn returns to match their scale.
The Nasdaq Composite was down 3.5% at 3:05 p.m. ET, according to the Associated Press (AP). In separate index figures, AP reported the S&P 500 lower by 2.3% and the Dow Jones Industrial Average down 723 points, or 1.4%. The Guardian estimated that the sell-off erased nearly $1 trillion from the combined value of stocks listed on the Nasdaq over the week and about $2 trillion since Oct. 1.
AP and The Guardian described investors’ concern that AI investment may not generate enough returns to justify its expense. AP also noted that high interest rates could slow data-center expansion. EconoTimes previously covered the technology sell-off’s effect on Strategy shares.
Amazon’s third-quarter revenue reached $201.9 billion, 12% higher than a year earlier. Amazon Web Services (AWS) brought in $46 billion, up 39.3%. Amazon said free cash flow for the 12 months through Sept. 30 was negative $42.4 billion; the company linked the result chiefly to a $94.8 billion year-over-year rise in property and equipment purchases, largely for AI projects. It continued to expect about $220 billion in cash capital expenditures for 2026.
Alphabet reported third-quarter revenue of $127.6 billion, up 25%, and Google Cloud revenue of $30.7 billion, a 103% increase. Its filing with the Securities and Exchange Commission showed $51.4 billion in capital expenditures for the quarter. AP reported that Alphabet shares fell more than 12% Thursday.
Intel reported third-quarter revenue of $16.5 billion, up 21%, and GAAP diluted earnings per share of 60 cents. Its fourth-quarter forecast was 10 cents per share on a GAAP basis and 25 cents on a non-GAAP basis. AP said the quarter’s profit beat analyst expectations, but the company’s outlook for the next quarter fell short. Intel shares dropped 30.7%, AP reported, without specifying a time for that figure. AP said the broader market was nearing its steepest daily decline since June and Intel its worst day in a history dating to 1972.
The sell-off extended to Asia, where South Korea’s Kospi fell 3.5% and Japan’s Nikkei 225 lost 2.1% Friday; Hong Kong’s Hang Seng rose 1.5%, AP reported. AP also noted falling Treasury yields as investors sought safer assets and said the broader market remained near a record, supporting workers’ 401(k) accounts. AP pointed to Tuesday’s U.S. midterm elections as the next event on investors’ calendar.
