US stocks, USA News: US stocks plunged in the final trading day of the month as earnings from Amazon and Alphabet this week rekindled concerns about the amount of money Big Tech is spending on its artificial intelligence ambitions.
The Nasdaq Composite tumbled 2.8% as a tech-fueled sell-off intensified. The Dow Jones Industrial Average fell 1.2%, or over 650 points, while the S&P 500 dropped 2%. For the month, the Dow gained 1.5%, while the Nasdaq and S&P 500 gave up gains, falling 5.2% and 1.2%, respectively. October marked the worst month for the Nasdaq since March 2025.
Stocks fell for the second day in a row after Amazon and Alphabet posted rare earnings misses, renewing concerns about the sustainability of the AI boom. Amazon shares fell 2%, while Alphabet continued to erase market value after its stock suffered its worst day in over 20 years. Intel also suffered a brutal reaction to its earnings report, dropping 29% in premarket trading after the company’s fourth-quarter outlook came up short.
Sector Performance and Commodities
One bright spot in the market was ExxonMobil and Chevron, whose stocks briefly touched record highs after the oil majors reported that their earnings were boosted as refining margins widened amid the conflict in the Middle East. Pharmaceutical company AstraZeneca also reported an earnings beat before the opening bell.
While earnings remained in focus, oil prices rebounded higher, putting additional pressure on markets. Brent crude futures rose to $112 per barrel, while WTI crude reached $104 per barrel. Bitcoin prices tumbled more than 2% as crypto assets were rattled following a $6.3 billion hack on cryptocurrency exchange Binance, marking the largest heist of its kind in history.
Market Sentiment and Economic Context
Selling pressure intensified in afternoon trading as investors took money off the table into month-end and ahead of upcoming midterm elections. Amazon shares lost more than 1% after reporting third-quarter earnings and revenue that fell short of Wall Street expectations. The company also posted negative free cash flow of $42.4 billion and maintained its 2026 capital expenditures forecast of $220 billion.
Intel tanked almost 29% after issuing a weak outlook for the current quarter, pointing to a slowdown in personal computers. Revenue in the company’s client computing and physical artificial intelligence group declined 5% from the year-ago quarter to $8.1 billion. Chipmakers more broadly were under pressure, with Advanced Micro Devices dropping close to 11%, and Nvidia and Broadcom falling 4% and 5% respectively.
As investors rotated out of tech, defensive areas such as consumer staples and healthcare saw gains. Walmart and Coca-Cola each rose more than 1%, keeping the Dow’s losses in check. Fellow Dow members Merck and Amgen were also higher.
