Technology stocks have fallen 10% from their peak as investors scrutinize AI capital spending, free cash flow and the durability of earnings growth, according to Truist chief markets strategist Keith Lerner, who said more downside risk is 'possible.' On Friday, more than $1 trillion in market value was wiped out as investors worried about weakening cash flow at Big Tech companies spending heavily on AI. Google posted negative free cash flow in the third quarter, Amazon did the same later that week, and Meta posted negative free cash flow for the first time since 2012, though none of these companies suggested its AI spending would slow. Lerner's charts show tech stocks trading below their 10-year average P/E ratio, with the P/E falling amid lower earnings expectations, and history suggests selling pressure could continue.
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Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 690.49 |
| Change that session | -3.47% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 755.71 |
| Change that session | -1.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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