Tech selloff pushes US indexes lower as Intel and Alphabet shares tumble

what happened

According to Seeking Alpha, the major US indexes each lost at least 1% this week amid a sharp slump in technology stocks. The S&P 500 fell 0.57%, the Nasdaq Composite dropped 2%, and the Dow Jones declined 0.85%. Intel plunged nearly 26% after weak fourth-quarter guidance, with revenue expected between $15 billion and $16 billion against estimates of $17.05 billion. Alphabet fell 12.2% after third-quarter revenue and earnings came in below forecasts, even though Google Cloud revenue more than doubled.

The Fed held rates at 3.75%-4.00%, September core PCE rose 0.3% month over month in line with estimates, and third-quarter US GDP beat expectations. Elsewhere, DoorDash agreed to buy Instacart for about $17 billion, ServiceNow dropped nearly 27%, and Meta launched offerings totaling about $37.5 billion to fund AI infrastructure.

why it matters

Investors are worried that spending on artificial intelligence is rising faster than revenue, so even solid reports are not protecting stocks. The selloff signals a shift in sentiment toward technology, and Meta's share sales add supply to an already nervous market.

market impact

US tech stocks: weak reports and AI spending concerns pressure shares and major indexes

• ▼US stocks pressure down — the technology selloff drags the major indexes lower
• ▼Nasdaq pressure down — large tech companies posted weak results and guidance

tags

instruments