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The Nasdaq Composite fell 2.9% on Friday to 25,437, its sharpest one-day decline since March 2025, while the S&P 500 and Dow also dropped. Intel sank 28.6% after forecasting fourth-quarter earnings and revenue below Wall Street expectations, adding pressure to semiconductor stocks amid broader concerns about technology spending and AI returns.
U.S. stocks fell sharply Friday as investors sold technology and semiconductor shares, with the Nasdaq Composite down 2.9% to 25,437 and Intel plunging 28.6% after issuing a weaker-than-expected fourth-quarter forecast. The Nasdaq’s decline was its steepest single-day drop since March 2025, according to the source report, and reversed its modest weekly gain.
All three major U.S. indexes opened lower. The S&P 500 fell 1.8% to 7,580, leaving it down 0.6% for the week, while the Dow Jones Industrial Average dropped 1.1% to 51,770 and lost 0.9% over the week. The Nasdaq ended the week down 2% after Friday’s decline.
Intel was the S&P 500’s worst-performing stock, falling 28.6%. The company forecast fourth-quarter earnings of 25 cents per share on revenue of $15 billion to $16 billion. The report said Wall Street analysts had expected 45 cents per share and revenue of $17.3 billion. Intel management reported mixed results and pointed to a faster-than-anticipated slowdown in its core PC market.
The sell-off spread across chipmakers. Advanced Micro Devices fell 10.9%, while Nvidia declined 4.2%. The source report also cited concerns about high technology and AI-related spending, financing costs and the route to profitability. LPL Financial Chief Cross-Asset Strategist Adam Turnquist said mega-cap stocks had faced increased selling pressure over the previous two weeks, with some recent company reports showing slower growth in core businesses.
Tech Sell-Off Hits Indexes
The losses matter because technology companies make up a substantial part of the Nasdaq and are prominent in the broader market. A sharp decline in major chipmakers and other large technology stocks can weigh on index performance and affect investors whose portfolios are concentrated in those companies or in broad funds tracking the indexes.
The report links the selling to uncertainty about whether large investments in AI infrastructure will generate sufficient returns, alongside rising financing costs. Those are concerns cited by market observers, not proof that AI investment will fail. Friday’s price moves show that investors were reassessing risk; they do not establish how long the selling will last or whether it will spread further.
Investors also moved toward assets viewed as safer. Treasury yields fell as bond prices rose, while energy, consumer staples and healthcare shares were described as areas attracting interest. That rotation can signal a change in market leadership, but one session alone does not confirm a lasting shift.
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The source report described a broader rotation away from technology and AI infrastructure stocks, following increased selling pressure in mega-cap companies over roughly two weeks. Turnquist said concerns included elevated AI spending and financing costs, and pointed to slower growth in some hyperscalers’ core businesses.
Recent company results were mixed, according to the report. Alphabet’s advertising revenue growth was its weakest in five quarters, and Amazon’s e-commerce sales growth slowed to a three-year low. Microsoft, by contrast, reported stronger cloud revenue, with Azure sales exceeding expectations. These examples show that the session’s concerns were not uniform across the largest technology companies.
Intel’s forecast was a company-specific catalyst within the wider decline. Its projected fourth-quarter revenue and earnings were below the expectations cited in the report, while AMD was due to report quarterly results after Tuesday’s close. Apple was scheduled to report fiscal fourth-quarter results after Monday’s close. Those upcoming reports could give investors further information about demand and spending across the sector.
How Long Selling Will Last
The source does not establish whether Friday’s losses mark a short-lived reaction or a sustained market shift. It also does not give a calendar date for the session, so the timing is reported as Friday’s close rather than assigned a date. Market concerns about AI investment returns and slowing business growth remain investor assessments, not confirmed outcomes.
Intel’s forecast gives investors a near-term company-specific data point, but the report does not provide details sufficient to determine how much of the decline reflected its outlook versus wider market selling. The reported $6.3 billion Binance hack, attributed in the source to North Korean government agents, was also cited as a factor unsettling technology shares; the report provides no independent verification or further incident details.
Oil prices rose as the source connected the move to expectations of an intensification of the Middle East war after U.S. midterm elections. That expectation is not the same as confirmation of a future escalation. The report also does not establish how markets will respond to upcoming employment, Federal Reserve or corporate earnings updates.
Earnings and Jobs in Focus
Investors were due to receive several new data points in the following days. Apple’s fiscal fourth-quarter results were scheduled for after Monday’s close, followed by AMD’s quarterly earnings after Tuesday’s close. Their results and outlooks may provide further evidence about consumer demand, chip sales and technology spending.
The U.S. Bureau of Labor Statistics was scheduled to release its October employment report before the market opened the following Friday. The source said markets expected the data to show continued stability. The report also flagged a speech by Cleveland Federal Reserve President Beth Hammack for the following Thursday, after she dissented from the Fed’s decision to hold rates steady at its October meeting.
Those events may shape expectations for interest rates and company earnings, but the source does not state how markets will react. Further trading sessions, corporate guidance and economic data will show whether Friday’s drop is followed by continued technology weakness or a recovery.
Key Questions
How much did the Nasdaq fall?
The Nasdaq Composite fell 2.9% on Friday, closing at 25,437. The source report said it was the index’s steepest single-day decline since March 2025.
Why did Intel shares drop?
Intel fell 28.6% after reporting mixed results and forecasting fourth-quarter earnings and revenue below the analyst expectations cited in the report. The company also faced a faster-than-anticipated slowdown in its core PC market.
Did the other major indexes also decline?
Yes. The S&P 500 fell 1.8% to 7,580, and the Dow dropped 1.1% to 51,770. All three indexes opened lower, according to the source.
What market events were coming up?
The source listed Apple’s results after Monday’s close, AMD’s report after Tuesday’s close, and the U.S. October employment report before the market opened the following Friday. It also noted a scheduled speech by Cleveland Fed President Beth Hammack the following Thursday.
Source: kiplinger.com
