Optencis
The selloff in technology shares gathered pace on 30 October 2026 as disappointing company results added to doubts about the cost of the artificial intelligence (AI) boom. Amazon shares fell 7% in after-hours trading after its results, and by late in the US session the Nasdaq 100 was heading for what would be its third technical correction of 2026, Bloomberg reported.
What happened
The latest round of earnings from big technology companies has failed to reassure investors. Alphabet's results earlier in the week revived concerns about AI spending, and Amazon's report overnight did the same, as its large AI investment bill drew more attention than strong growth in its cloud business. Bloomberg also reported that Intel's results weighed on the AI trade on Friday.
The pressure was global. In Asia, chipmaker shares fell and Taiwan's main stock index came close to a technical correction, according to Bloomberg. US equity futures were already lower before European markets opened.
The figures
Amazon shares were down 7% in after-hours trading following its results, investingLive reported. Early on 30 October, Nasdaq futures were 1.8% lower.
By the end of the day in Europe, Bloomberg reported that investors had sold large technology stocks heavily enough to push the Nasdaq 100 toward a third correction this year. A technical correction usually means a fall of 10% or more from a recent high.
Why investors are worried
The main concern is not whether AI works, but how much companies must keep spending on it and when that spending will pay off. Bloomberg described this earnings season as a key test for the AI trade, with worries growing about rising costs and how long demand will last.
Investors are also reacting sharply to any disappointment. Bloomberg reported that companies missing expectations are seeing some of the steepest share-price drops on record, while strategists warn that profit growth may already have reached its high point.
Other markets showed unusual moves too. US Treasury yields fell alongside stocks, and gold struggled to gain despite the cautious mood, investingLive noted. Oil prices stayed relatively high during the week, which keeps inflation risks in the picture.
- 1Heavy AI spendingBig Tech budgets keep growing
- 2Payoff doubtsInvestors question returns on spending
- 3Tech shares soldAmazon, Intel, chipmakers fall
- 4Index slidesNasdaq 100 nears correction
He suggested that Treasury yields falling alongside stocks may reflect investors looking for safety rather than welcoming cheaper borrowing.
Views reported by the sources, not Optencis opinions.
What to watch next
Traders will be watching whether the weakness in technology shares spreads more broadly across equity markets. The behaviour of Treasury yields matters too: yields and stocks falling together can be a sign that investors are moving into safer assets.
Further results from AI-linked companies will show whether the spending concerns ease or grow. We will keep following the reaction in the Nasdaq 100 and chip stocks.
Sources: Bloomberg, investingLive.
