October 30, 2026 — U.S. technology stocks suffered a sharp decline on Friday, bringing a turbulent October to a close as investors reconsidered the enormous spending commitments behind the artificial intelligence boom.
The Nasdaq Composite recorded its biggest single-day drop since June, while Intel and Reddit shares plunged 29% each. SanDisk, another major beneficiary of the AI infrastructure spending surge, fell 13%.
The selloff reflected growing concerns about whether technology companies investing heavily in artificial intelligence will generate enough returns to justify their spending.
Intel, Reddit and SanDisk Lead Technology Declines
Intel and Reddit each lost 29% on Friday, while SanDisk dropped 13%, extending pressure across technology stocks.
The declines followed a difficult week for major companies driving AI infrastructure development. Microsoft, Meta Platforms, Amazon and Google parent Alphabet each fell between 1% and 2% on Friday after recording significant losses earlier in the week.
The Nasdaq 100, which tracks large nonfinancial companies, dropped 3.5% after falling even further during the session. The index approached correction territory, generally defined as a decline of at least 10% from a recent high.
The Nasdaq Composite was down 7.8% from its closing record, with its worst monthly performance since March 2025 erasing part of its gains from the AI-driven rally.
Investors Question the Cost of the AI Boom
The pressure on technology shares has increasingly centered on the enormous capital investments required to build AI infrastructure.
According to Capital Economics, Microsoft, Meta, Amazon and Alphabet collectively accounted for more than one-third of the capital spending undertaken by current S&P 500 companies over the previous 12 months. Their share is expected to increase further.
John Higgins, a markets economist at Capital Economics, said investors were becoming more concerned as the hyperscalers’ combined investment boom increasingly depended on external financing.
The scale of spending and the way companies are funding their expansion have become major sources of uncertainty.
Brian Jacobsen, chief economic strategist at Annex Wealth Management, said investors were increasingly distinguishing between companies likely to generate revenue from AI investments and those that may struggle to monetize their spending.
Market Selloff Spreads Beyond Technology
The downturn extended beyond technology stocks, reflecting a broader retreat from riskier assets as U.S. Treasury prices rallied.
Precious metals also suffered significant losses. Silver fell 6% on Friday, leaving it down 31% for the year, while gold declined 3.5%, bringing its 2026 losses to 10%.
Oil prices moved in the opposite direction, rising 2% and adding to concerns about the U.S. economy’s dependence on continued investment in artificial intelligence.
Financial stocks also came under pressure. Goldman Sachs dropped 4%, while Jefferies lost 6%.
Bitcoin declined 3% after hackers stole more than $6 billion from Binance, adding another source of uncertainty across financial markets.
Analysts See a Possible Market Correction After Strong Gains
Despite the scale of Friday’s losses, some market participants viewed the selloff as a correction following an unusually strong rally rather than evidence of a broader financial crisis.
Sahak Manuelian, managing director for global equities sales and trading at Wedbush Securities, said the market had experienced substantial gains across the technology sector, making a sharp pullback less surprising.
He also noted that investors were beginning to move money out of certain areas and into other parts of the market.
The recent declines have raised questions about whether the market can regain momentum when November trading begins or whether investors will remain cautious.
Investors Look Ahead to a New Trading Month
Friday’s session left investors reassessing the sustainability of the AI-driven rally, particularly as the largest technology companies continue committing enormous resources to infrastructure development.
The central question is no longer simply how much companies are spending on AI, but which businesses will ultimately turn those investments into sustainable revenue and profits.
As October ends, investors face a market increasingly focused on valuations, financing risks and the long-term commercial returns of artificial intelligence.
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