Intel crash drags US markets down

US stock markets declined on Friday as a renewed sell-off in technology shares overwhelmed gains elsewhere on Wall Street. The S&P 500 dropped 1.1 percent, positioning the index to erase its entire monthly gain for October despite having set an all-time high earlier in the month. The Nasdaq composite fell 2 percent by 10 a.m. Eastern time, while the Dow Jones Industrial Average lost 0.3 percent, or 176 points.

Intel led the decline, tumbling 28.9 percent in its worst trading day since 1974. The chipmaker reported a quarterly profit that exceeded analyst estimates, but its forecast for the final three months of the year fell far short of expectations. CEO Lip-Bu Tan stated that the personal-computer industry continues to face pressure, which reduces demand for Intel's central processing units.

Amazon shares fell 2 percent after the company reported a weaker summer profit than analysts anticipated. Investors reacted negatively to data showing the company burned through $42.4 billion in cash over the prior 12 months. Amazon spent $94.8 billion on property and equipment, primarily for artificial-intelligence technology investments.

The broader market reflects growing anxiety over the return on massive AI spending. Nvidia, a key beneficiary of the AI build-out, dropped 2.7 percent, serving as the heaviest drag on the S&P 500. This decline followed a record 12 percent drop for Alphabet on Thursday, when it disclosed higher cash burn due to AI investments. Concerns persist that high interest rates may slow the construction of new data centers.

Cryptocurrency stocks also suffered losses following a hack at Binance, the world's largest crypto exchange. A North Korean unit was identified by a US-based blockchain intelligence firm as the likely culprit behind the attack, which impacted more than $6 billion in assets. Bitcoin prices fell toward $77,000 from above $86,000 earlier in the month. Coinbase Global dropped 10.8 percent despite strong quarterly results, while Strategy, which holds about 4 percent of total bitcoin supply, fell 8.4 percent.

Non-tech sectors showed resilience on Friday. Exxon Mobil rose 2.2 percent and Chevron added 1.6 percent after both reported summer profits that beat estimates. Mondelez International climbed 3.5 percent on stronger-than-expected growth, while Colgate-Palmolive rose 1.9 percent following better revenue and profit figures. Starbucks fell 1.1 percent after its quarterly revenue missed analyst targets despite a profit beat.

In the bond market, Treasury yields eased as investors sought safer assets. The 10-year Treasury yield fell to 4.94 percent from 4.98 percent on Thursday. This decline occurred even as Brent crude oil prices rose 2.4 percent to $113.45 per barrel, a level near the high end of its range since the war with Iran began pushing oil prices and inflation higher.

Global markets mixed following sharp moves in Asia. South Korea’s Kospi index dropped 3.5 percent as AI worries hit its tech-heavy market. Japan's Nikkei 225 fell 2.1 percent after the Bank of Japan kept interest rates steady, mirroring recent actions by the Federal Reserve and the European Central Bank. The Hang Seng index in Hong Kong climbed 1.5 percent.