US Tech Stocks Plunge as Investors Rotate Out of AI

US equity markets experienced a sharp divergence on Friday, October 30, 2026, as investors rotated out of artificial intelligence trades and into defensive sectors. The Nasdaq plunged nearly 3 percent, while the S&P 500 fell 1.8 percent and the Dow slumped 1.1 percent. Intel led the rout, plummeting approximately 29 percent following disappointing fourth-quarter guidance, marking its steepest intraday decline on record.

Other technology giants faced significant losses. Amazon shares fell after missing third-quarter earnings and revenue estimates, reporting negative free cash flow and projected capital expenditures of $220 billion for 2026. This followed a record single-day loss for Alphabet Inc. on Thursday, which erased over $500 billion in market value. The Goldman Sachs Broad AI US Index sank 4.7 percent as investors began demanding that massive AI spending translate into sustainable revenue growth.

Conversely, defensive sectors and energy companies thrived. Consumer staples led by Colgate-Palmolive and Mondelez International rose after beating consensus estimates, and energy firms including Chevron Corp. and ExxonMobil gained on rising crude oil prices linked to conflict in the Middle East. In Europe, the FTSE 100 closed slightly higher, though NatWest Group fell 8.8 percent on margin guidance. In the cryptocurrency market, Binance reported it is resolving a complex attack affecting $6.3 billion in funds, contributing to a 12 percent drop for Coinbase.