AI Spending Fears Trigger Global Tech Stock Rout

Global equity markets experienced a severe sell-off on October 30, 2026, as investors questioned the sustainability of massive capital expenditures on artificial intelligence. The rout was triggered by disappointing third-quarter results from Amazon.com Inc., Intel Corporation, and Alphabet Inc., which revealed significant cash burn and negative free cash flow. Alphabet lost approximately $500 billion in market value, while Intel shares plunged between 25% and 30% following a weak fourth-quarter revenue forecast and reports of a factory explosion in Israel that erased $600 million in revenue.

The volatility spread rapidly across Asia, causing the South Korean KOSPI to slump over 5% and Japan's Nikkei 225 to drop as much as 3%. Major chipmakers including Samsung Electronics and SK Hynix saw sharp declines, while Taiwan's Taiex plunged 2.49%. In the United States, the Nasdaq-100 was on track to erase $1 trillion in value as firms like Meta Platforms Incorporated and Microsoft sought massive funding—including a $25 billion debt sale by Microsoft—to sustain AI ambitions.

Market instability was compounded by a record-breaking $6.3 billion hack at the cryptocurrency exchange Binance, which suspended all operations. Simultaneously, geopolitical tensions rose as Brent crude oil prices surged amid reports that the United States might resume military strikes against Iran. In response to the risk-off environment, investors shifted capital toward safe-haven assets, including U.S. Treasury bonds and the Japanese yen, while the Bank of Japan maintained its benchmark interest rate at 1.25%.