Intel's historic plunge and Amazon's massive AI capex bill sent the Nasdaq Composite down 2.86% on October 30
The Nasdaq Composite fell 2.86% on October 30, 2026, closing at 25,437.00. That was the index’s largest one-day percentage decline since June 5.
The trigger was a familiar one this earnings season: worry about how much Big Tech is spending on artificial intelligence, and when any of it pays off.
Intel and Amazon lead the retreat
Intel did most of the damage. Its shares fell nearly 29% after the chipmaker issued disappointing fourth-quarter guidance tied to AI and PC market dynamics.
That was Intel’s worst single-day performance since 1974.
Amazon added to the gloom from the other side of the AI trade. The company disclosed $42.4 billion in free cash flow outflows over the preceding year, alongside $94.8 billion in capital expenditures directed primarily at AI-related infrastructure.
The pain spread quickly across semiconductors. AMD dropped 10.9%, Nvidia fell 4.2%, and the semiconductor index slid 7.2% on the day.
The broader market didn’t escape either. The S&P 500 lost 1.82%, while the Dow Jones Industrial Average gave up 1.09%.
A rough month for the AI trade
The selloff capped several weeks of choppy trading in tech. The Nasdaq is now down 7.8% from the record high it set on October 6, 2026.
It is also on track for its worst monthly decline since March 2025.
Thursday’s losses didn’t arrive in a vacuum. Alphabet recently posted its worst day on record, a 12.6% drop, and Meta reported negative free cash flow for the first time since 2012.
What this means for investors
The most immediate takeaway is that capex announcements alone no longer seem to move markets upward. Investors appear to want tangible evidence of profitability from AI before rewarding further spending on technology that demands huge upfront investment.
The semiconductor reaction is worth watching closely. A 7.2% drop in the chip index signals that the market is questioning not just the spenders, but the suppliers whose growth depends on that spending continuing.
Nvidia’s relatively modest 4.2% decline, compared with AMD’s 10.9% fall and Intel’s collapse, suggests investors are still differentiating within the sector.
Key things to watch from here include whether the Nasdaq holds above the 10% drawdown line from its October 6 peak, how other large AI spenders frame their capex plans in coming reports, and whether Intel’s guidance proves to be a company-specific problem or an early warning for the wider PC and chip market.
