Tech Rout Deepens as AI Spending Scrutiny Hits Wall Street

A sharp sell-off in technology stocks intensified Friday as investors questioned whether the massive capital pouring into artificial intelligence will ever yield sustainable profits. The S&P 500 slumped 2.2%, tracking toward its worst daily performance since June, as the market transitions from speculative optimism to a demanding evaluation phase.

Editorial·October 30, 2026·reads: 169

Tech Rout Deepens as AI Spending Scrutiny Hits Wall Street

The Nasdaq composite bore the brunt of the retreat, tumbling 3.4% as high-profile tech giants faced a skeptical market. Intel shares plummeted 30.9% in a historic single-day slide, despite reporting quarterly earnings that topped analyst expectations. CEO Lip-Bu Tan pointed to ongoing weakness in the personal-computer sector, fueling broader concerns about the industry's health. Amazon and Alphabet also faced investor ire, with both companies reporting significant cash outflows driven by aggressive infrastructure investments.

Nvidia, the primary beneficiary of the AI data center boom, saw its stock slide 5.3%, acting as a major drag on the S&P 500. Portfolio manager Joe Tigay of Equity Armor Investments noted that the market has exited the 'hopes and dreams' stage, moving into a 'show me' phase where companies must demonstrate tangible returns on their multi-billion dollar AI bets. Beyond the tech sector, crypto-related stocks including Coinbase also retreated following a major hack on Binance, while traditional industries like energy and consumer goods showed resilience, with ExxonMobil and Colgate-Palmolive posting gains as they reported earnings that surpassed market forecasts.