Nasdaq records biggest daily decline since June as October ends with technology selloff
NEW YORK, United States, October 31, 2026, ZEX PR WIRE — Wall Street ended the final trading session of October sharply lower as concerns about artificial intelligence spending, weaker corporate results and stretched technology valuations triggered a broad selloff. The Nasdaq Composite declined approximately 2.86%, recording its largest one day percentage fall since June 5, while the S&P 500 fell 1.82% and the Dow Jones Industrial Average lost 1.09%.
The decline followed disappointing results and financial outlooks from major technology companies, including Intel and Amazon. The selloff also affected semiconductor manufacturers, server suppliers and other businesses associated with the expansion of AI infrastructure.
AI investment concerns dominate market sentiment
Artificial intelligence has been one of the most important drivers of technology sector investment and market valuations in 2026. Large technology companies have committed substantial capital to data centres, specialised processors and computing infrastructure.
However, investors are increasingly questioning how quickly this spending can translate into earnings and free cash flow. The latest results from Intel and Amazon intensified those concerns, while Alphabet’s earlier earnings report had already raised questions about the financial cost of AI expansion.
The reaction indicates that market participants are becoming more selective. Revenue growth and technological leadership remain important, but companies are also being assessed on capital requirements and the commercial returns generated by their investments.
Technology weakness spreads across sectors
The selloff extended beyond individual companies. Semiconductor shares experienced particularly strong declines, while server manufacturers and other businesses connected to data centre expansion also came under pressure.
The Nasdaq’s decline was especially notable because technology stocks have played a major role in the market’s performance during the year. Its movement suggests that investors are reassessing the risk associated with concentrated exposure to a relatively small group of large companies.
Other areas of the market also faced pressure. Financial stocks declined, while precious metals recorded substantial losses during the same session. This indicates that the market adjustment was broader than a simple rotation away from technology shares.
What investors will monitor next
The coming week will bring another important test for markets, with results expected from major companies including Apple, AMD, Qualcomm and Palantir. Investors will be looking closely at revenue growth, AI related expenditure and management guidance.
The US employment report will also be important because it may provide further information about the health of the labour market and the wider economy.
The final session of October has highlighted a key question for markets: whether the investment required to build AI infrastructure can generate enough sustainable financial returns to support current valuations.
