Tech Selloff and Fed Hawkishness Drive U.S. Market Decline
U.S. stock indexes closed sharply lower on October 30 as AI profitability concerns and hawkish Federal Reserve signals triggered a technology-led selloff.
Major U.S. stock indexes closed sharply lower on October 30, 2026, led by a technology-led selloff that saw the NASDAQ Composite plunge 747.73 points, or 2.86%. The S&P 500 fell 1.82% and the Dow Jones Industrial Average dropped 1.09%. Investors questioned the costs and profitability of the artificial intelligence boom following disappointing earnings from Amazon and Intel, as well as reports that Blackstone warned Anthropic it might not achieve an investment-grade credit rating after its IPO.
Simultaneously, officials from the Federal Reserve System maintained a hawkish stance on interest rates. Dallas Fed President Lorie Logan called for at least two more quarter-point rate hikes, while St. Louis Fed President Alberto Musalem argued for a rate increase soon. Richmond Fed President Tom Barkin favored a gradual approach but noted inflation pressures from AI investment, and San Francisco Fed President Mary Daly emphasized that AI's impact on employment and price stability remains critical for policy.
The downward trend extended to North Asian markets in South Korea, Taiwan, and Japan, though gains in Hong Kong, India, and Australia provided a partial counterweight. In other markets, Treasury yields fell due to defensive demand, while WTI crude oil prices rose amid Middle East tensions. Gold, silver, and Bitcoin all declined as investors looked toward upcoming employment reports and the U.S. midterm elections for further direction.
