The market downturn was catalyzed by quarterly results from Intel and Amazon, which fueled investor anxiety over substantial artificial intelligence cash burn. Semiconductor and infrastructure hardware firms suffered steep drops, compounded by severe pressure in crypto-linked equities following a massive exchange hack. Meanwhile, broader earnings resiliency remained partially intact, with 82% of reporting S&P 500 companies surpassing consensus expectations.
Key points
Disappointing tech earnings have intensified concerns that massive investments in artific…: Disappointing tech earnings have intensified concerns that massive investments in artificial intelligence may fail to yield returns.
Energy companies like Exxon Mobil and Chevron gained ground due to margins supported by i…: Energy companies like Exxon Mobil and Chevron gained ground due to margins supported by international geopolitical conflicts.
Cryptocurrency stocks tumbled significantly following reports of a $6.3 billion cyber the…: Cryptocurrency stocks tumbled significantly following reports of a $6.3 billion cyber theft from Binance.
Sources checked by our analysis pipeline: 1
(Updates to midafternoon trading, adds analyst comment)
* Crypto firms slide after reports that hackers stole $6.3 billion from Binance
By Stephen Culp and Purvi Agarwal
NEW YORK, Oct 30 (Reuters) - US stocks tumbled on Friday, with the Nasdaq plunging to a three-month low following disappointing quarterly results from Intel and Amazon, which amplified growing fears surrounding AI-related companies' massive spending on the nascent technology, and concerns about when or whether the cash burn will start to pay off.
All three major US stock indexes slumped, with the Nasdaq sliding 3.4%. The tech-heavy index has dropped more than 8% from its all-time closing high reached on October 6.
The tech rout was sparked by disappointing quarterly results from Intel and Amazon released late on Thursday. The companies' shares slumped 2.1% and 30.9%, respectively.
Chip stocks veered sharply lower, with Nvidia down 5.3% and AMD sliding 12.1%. The broader chips index shed 8.7% and was headed for a monthly loss. Server makers…
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