There was a big fall in the American stock market on Friday. Investors’ concerns have increased due to the continuously increasing expenditure on AI and the results of Intel-Amazon. Its biggest impact was on tech stocks. The biggest one-day decline was recorded in Nasdaq since the beginning of June. Due to continuous selling of shares of tech companies in October, the market value is expected to decline by about 2.7 trillion dollars.
How much did the American market fall?
According to Reuters, Dow Jones fell 1.09% to close at 51,770.31 on Friday. The S&P 500 fell 1.82% to 7,580.07. Whereas Nasdaq Composite fell 2.86% and closed at 25,437. Nasdaq is now 7.8% below its record level of October 6.
Concern increased due to the results of Intel and Amazon
Intel and Amazon released their results after the market closed on Thursday. Intel’s shares fell by a huge 28.6%. The company reported an increase in cash expenditure, which increased the concern of investors. At the same time, Amazon’s plan to spend extensively on AI also spoiled the mood of the market. Investors are worried that after investing so much money on AI infrastructure, how long will the companies get the benefits from it.
Shares of chip companies including Nvidia and AMD fell
Chip companies were most affected by the increased concern over AI spending. Nvidia shares fell 4.2% and AMD shares fell 10.9%. The Philadelphia Semiconductor Index fell by 7.2% in one day. This month this index has fallen by more than 15%. At the same time, shares of Dell fell by 10.8% and shares of HP by 9.6%.
Biggest monthly decline in more than a year
According to Bloomberg, the Nasdaq 100 recorded its worst monthly performance since March 2025. The tech sector of the S&P 500 also witnessed the biggest monthly decline since March 2025. At the same time, the communication services sector witnessed the biggest monthly decline since April 2022.
Heavy selling in crypto shares also
Apart from tech stocks, shares of crypto companies also crashed. Shares of Coinbase, Strategy and Robinhood fell by 7.2% to 10.6% after the news of hacking of crypto exchange Binance worth $6.3 billion. The price of Bitcoin also fell by 2.5% to $76,813.65.
The special thing is that the results season of American companies has been overall good. According to LSEG data, till now 299 companies of S&P 500 have released their third quarter results. The profit of 82% of these companies has been better than market estimates. Despite this, increasing expenditure on AI and uncertainty about future earnings have increased the concern of investors.
Source: ndtv.in
