The Nasdaq Composite fell 5.3% in October, its worst monthly performance since the tariff selloff of early 2025, as worries over AI spending weighed on the index. JPMorgan estimates capex among the five largest hyperscalers could approach $900 billion in 2026, up from a $736 billion forecast earlier in the year, and sees global AI capex topping $5.5 trillion by 2030. The Nasdaq has suffered 15 monthly declines of at least 5% over the past decade, and has typically recovered quickly, returning an average of 24% in the following 12 months. While acknowledging that past performance is no guarantee, the author argues that recent quarterly results are only one data point and that the investment thesis for the companies involved remains intact.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NasdaqAI investmenttech stocks
Open a keyword to see other news on the same topic.
Related tickers and likely impact
QQQ
• NeutralInvesco 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.
Related news
- The Tech Sell-Off is Putting the AI Trade on Notice. An Expert is Questioning Whether the Spending is Justified.
The Nasdaq Composite fell more than 3% on Friday, its worst day since June, as sell-offs in Amazon and Intel stock highlighted investor pressure on the AI trade. Investors increasingly want companies to show how large spending commitments will produce profits, rather than simply promising a place in the next technological revolution. Amazon reported negative free cash flow of $42.4 billion over the preceding 12 months, and its latest results indicated further increases in AI spending. Mark Vena, CEO and principal analyst at SmartTech Research, said investors are losing patience with AI spending that lacks clear payback dates, while Intel also faces weak PC demand and manufacturing challenges. He expects a more selective market that rewards companies turning adoption into profitable revenue.
- Tech gets crushed, defensive stocks shine. How we're making sense of it all
U.S. stocks fell sharply on the last trading day of October, with the S&P 500 down more than 2% and the Nasdaq down over 3.5% as the market continued to push back on AI-related tech names. Intel plunged over 30% after a disappointing outlook, and Sandisk fell 15% after underwhelming earnings. Amazon, Alphabet and Microsoft also dropped after their reports; the author sees the Amazon and Microsoft declines as less warranted, though investor appetite for capital-intensive AI spending appears to be waning. Jim Cramer said the Amazon dip is buyable and kept Amazon at a 1 rating, while Microsoft is nearing an upgrade to a buy-equivalent 1 if its slide continues and Alphabet stays at hold-equivalent 2. Healthcare stocks outperformed this week, led by Eli Lilly at a new all-time high, and the team still wants to add to its Boeing position; more than 100 S&P 500 companies report this week, October nonfarm payrolls are expected to add 72,500 jobs, and the midterms are on Tuesday.
- AI Selloff Gains Steam. Nasdaq Sinks Over 3%.
- Tech Sell-Off Grips Wall Street as Investors Worry About AI Spending
The Nasdaq fell 2.5% when trading resumed on Friday, after dropping more than 1.3% on Thursday, as investors worried about excessive AI spending. Amazon shares fell as much as 5.9% after it reported third-quarter capital spending of $77.3 billion, above expectations, while Intel plunged 29.4% in its worst day in two years after warning it would increase spending this year. Amazon and Intel together lost about $300 billion in market value on Friday, and Alphabet suffered a record $500 billion wipe-out on Thursday over fears AI could erode its search advertising business. Goldman Sachs predicts that five AI hyperscalers, namely Microsoft, Alphabet, Amazon, Meta and Oracle, will spend $1.2 trillion on infrastructure next year, but concerns are growing that this spending may not translate into revenue and profit. Rising oil prices added pressure, with Brent crude rising above $117 a barrel, its highest since April.
- Tech stocks crushed as Nasdaq futures tumble nearly 800 points
Nasdaq futures fell nearly 800 points, or 2.7%, before Friday's open after weak earnings from Alphabet, Amazon and Intel revived doubts about AI returns. Intel shares plunged more than 26% premarket, while Alphabet fell more than 12% on Thursday, its worst day since its 2004 IPO. Vital Knowledge's Adam Crisafulli called this one of the worst tech earnings seasons in memory. S&P 500 futures were down 1.1% and Dow futures 0.1%. Investors are also worried about the debt companies are taking on to fund data center spending, and UBS advised clients to diversify beyond AI.
- The Nasdaq Crashed 700 Points in a Day Last Week. One Major Wall Street Firm is Predicting the Correction Will End After Midterms.
The Nasdaq plunged nearly 700 points in a single trading session as concerns about artificial intelligence spending rattled technology investors. One major Wall Street firm believes the correction could end after the 2026 midterm elections.
Related markets
Latest news
- SK Hynix Shares Surge. Why It's Not Too Late to Buy the Stock.
SK Hynix's third-quarter revenue rose 328% year over year to 104.62 trillion won ($77.9 billion), beating the 98.34 trillion won analyst average, mainly on higher memory prices. Operating profit jumped 632% to 83.33 trillion won ($62 billion), with gross margin at 86% and operating margin at 80%. The company announced a 20 trillion won ($14.9 billion) buyback and a 14 trillion won ($10.4 billion) dividend, and plans to return 50% of its cumulative 2025–2027 free cash flow to shareholders. It said HBM4 prices will rise next year and that HBM demand is more than double its supply. The author argues the stock still looks attractive at 4.5 times forward earnings for 2027, while acknowledging that memory is cyclical.
- The First U.S. Humanoid Robot Stock Starts Trading in November. Here's Why I'd Wait for the De-SPAC Dip.
Agility Robotics, a privately owned humanoid robot maker, is expected to begin trading in November after merging into the SPAC Churchill Capital XI (CCXI), whose $620 million offering values the company at $2.5 billion. Once completed, the entity will be renamed Agility Robotics and trade under the ticker AGLT. The article argues the SPAC route is easier than a conventional IPO, but new high-profile stocks often fall early as initial excitement fades, citing the recent debuts of Space Exploration Technologies (SPCX) and Lycia Therapeutics (LYCA). The author suggests investors need not rush in, since the most volatile period often ends within a few weeks, if not several days.
- Is The Trade Desk Stock Too Cheap to Ignore?
The Trade Desk (TTD) stock is down 90% from its all-time high, and the article attributes the weakening business to a botched rollout of an AI-powered platform and competition from Amazon (AMZN). Second-quarter revenue grew 3% year over year, analysts expect revenue to fall about 5% in 2026 and another 5% next year, and the stock trades at 11 times forward earnings. The author judges it a stock to avoid, sees value potential among faster-growing AI infrastructure companies, and says they would wait for a good quarter before revisiting it.
- Nuclear Stocks Have Crashed 35% to 88% From Their Highs. Here's What $1,000 in Each of These 5 Could Be Worth by 2030.
Five nuclear stocks, Constellation Energy, Vistra, BWX Technologies, Oklo, and NuScale Power, are down roughly 35% to more than 80% from their highs, even as demand for reliable nuclear power for AI data centers grows. Constellation and Vistra are up almost 500% and more than 600% over five years, and Vistra's revenue reached $9.66 billion in the first half of 2026 versus $8.18 billion a year earlier. Oklo and NuScale are pre-revenue: Oklo lacks an approved design, and NuScale has an approved design but has not won meaningful contracts, so reactors could take years to come online. BWX Technologies, the sole supplier of reactors for the U.S. Navy, is down 42% from its high, while its consolidated revenue grew 18% last quarter. The author believes Constellation, Vistra, and BWX can deliver solid returns through 2030 if nuclear demand keeps rising, but considers Oklo and NuScale better avoided.
- This Dividend Stock Yielding Quadruple the S&P 500 Looks Like a Buy Right Now
PepsiCo (PEP) yields about 4.4%, more than four times the S&P 500's roughly 1.1%. Third-quarter revenue rose 3% year over year, and its annual dividend payout of $5.92 per share is up from $4.60 in 2022 and $3.22 in 2017. The stock trades at a forward P/E of 15.5, below its five-year average of 20.3, and a price-to-sales ratio of 1.86 versus a five-year average of 2.48. The company has faced health-conscious consumers and weight-loss drug use, and is responding with price cuts and healthier products. The author views the stock as a potential fit for a long-term portfolio, given its dividend.
- Vietstock Weekly 02-06/11/2026: Still Many Challenges?
The weekly technical outlook for 26-30/10/2026 shows the VN-Index failing to sustain its recovery, falling in 4 of 5 sessions and staying below the Middle line of the Bollinger Bands. Trading volume fell below its 20-week average, signaling that investors remain cautious, while the Stochastic Oscillator and MACD weakened again. On 30/10/2026, the VN-Index fell for a second straight session and formed a High Wave Candle; the HNX-Index also stayed below the Bollinger Middle band, and a Death Cross formed between the 50-day and 200-day SMAs. On 29/10/2026, the VN-Index dropped 11.04 points to 1,755.61 and the HNX-Index fell 3.25 points to 256.61. The article says that without improvement, the short-term outlook will turn more negative.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.