Tech Stocks Tumble as Broader Market Keeps Holding On
Technology shares slide further
Investors sold artificial intelligence stocks on Friday amid questions about whether the industry’s debt-fueled spending still supported high share prices. Technology shares recorded steep declines on the final trading session of the month.
Intel shares plunged more than 25 percent after the chipmaker reported results below Wall Street expectations. Amazon fell 1.5 percent after its earnings also missed analysts’ forecasts.
Other sectors steady the market
The broader market showed resilience as energy, utilities and companies selling everyday goods posted gains. Consumer staples shares rose 1.5 percent on Friday, while Exxon Mobil gained 1 percent.
The pattern has been visible through October, with money moving within the stock market rather than leaving it. Strength in sectors that had languished for years has helped ease some investors’ concerns that weakness in A.I. stocks could pull down the entire market.
S&P 500 remains near record
The S&P 500 fell more than 1 percent on Friday and was set for a small loss in October. That would extend the index’s modest 0.5 percent decline in September. Despite the recent losses, the S&P 500 remained only slightly below its record high.
Key points
- The S&P 500 fell more than 1 percent on Friday and was headed for a small October loss.
- The Nasdaq dropped more than 2 percent as technology shares fell sharply.
- Intel plunged more than 25 percent after reporting results below Wall Street expectations.
- Gains in consumer staples, energy and utilities helped the broader market hold up.