{"id":73891,"date":"2026-10-30T13:08:21","date_gmt":"2026-10-30T17:08:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets\/73891\/"},"modified":"2026-10-30T13:08:21","modified_gmt":"2026-10-30T17:08:21","slug":"nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets\/73891\/","title":{"rendered":"Nasdaq Tumbles 3.4% as AI Spending Fears and Disappointing Tech Earnings Rattle Markets"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets\/73891\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets\/73891\/#Tech_Sell-Off_Deepens_on_AI_Monetization_Doubts\" >Tech Sell-Off Deepens on AI Monetization Doubts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets\/73891\/#Amazon_Taps_80_Billion_to_Fuel_AI_Infrastructure\" >Amazon Taps $80 Billion to Fuel AI Infrastructure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets\/73891\/#Anthropic_IPO_Faces_Credit_Rating_Headwinds\" >Anthropic IPO Faces Credit Rating Headwinds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets\/73891\/#Feds_Musalem_Signals_Potential_Rate_Hikes\" >Fed\u2019s Musalem Signals Potential Rate Hikes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets\/73891\/#Energy_and_Global_Policy_Developments\" >Energy and Global Policy Developments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nasdaq-tumbles-3-4-as-ai-spending-fears-and-disappointing-tech-earnings-rattle-markets\/73891\/#OpenAI_Commits_to_Safety_Transparency\" >OpenAI Commits to Safety Transparency<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Nasdaq 100 plunged 3.4% and the <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> fell 1.7%<\/strong> as disappointing earnings from <strong>Amazon<\/strong> (<a href=\"\/stock\/AMZN\">AMZN<\/a>) and <strong>Intel<\/strong> (<a href=\"\/stock\/INTC\">INTC<\/a>) fueled concerns over the massive capital expenditures required for artificial intelligence.<\/li>\n<li><strong>Amazon<\/strong> (<a href=\"\/stock\/AMZN\">AMZN<\/a>) secured a massive <strong>$80 billion supplier loan facility<\/strong> to fund AI infrastructure, highlighting the extreme financial demands of the current technology race.<\/li>\n<li><strong>Blackstone<\/strong> (<a href=\"\/stock\/BX\">BX<\/a>) warned investors that AI lab <strong>Anthropic<\/strong> may receive a &quot;high&quot; junk credit rating rather than investment grade following its upcoming IPO, citing over <strong>$400 billion<\/strong> in computing obligations.<\/li>\n<li><strong>St. Louis Fed President Alberto Musalem<\/strong> signaled that additional interest rate hikes may be necessary soon, noting that current &quot;forward guidance&quot; is less effective when rates are above zero.<\/li>\n<li><strong>U.S. Oil Rig Count<\/strong> rose by 2 to <strong>462<\/strong>, while the total rig count held steady at <strong>603<\/strong>, according to the latest <strong>Baker Hughes<\/strong> (<a href=\"\/stock\/BKR\">BKR<\/a>) data.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Sell-Off_Deepens_on_AI_Monetization_Doubts\"><\/span>Tech Sell-Off Deepens on AI Monetization Doubts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>Nasdaq 100 (<a href=\"\/stock\/QQQ\">QQQ<\/a>)<\/strong> suffered a sharp <strong>3.4% decline<\/strong> on Friday, leading a broader market retreat as investors questioned the immediate returns on multi-billion dollar AI investments. <strong>Intel<\/strong> (<a href=\"\/stock\/INTC\">INTC<\/a>) shares plummeted nearly <strong>30%<\/strong> after the chipmaker issued a weak sales forecast, while <strong>Amazon<\/strong> (<a href=\"\/stock\/AMZN\">AMZN<\/a>) saw its stock drop over <strong>5%<\/strong> despite growth in its cloud division. <em>Market analysts noted that &quot;strong AI demand is no longer enough,&quot; as investors now demand clear evidence that capital spending is translating into free cash flow.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Amazon_Taps_80_Billion_to_Fuel_AI_Infrastructure\"><\/span>Amazon Taps $80 Billion to Fuel AI Infrastructure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a move that underscores the scale of the AI build-out, <strong>Amazon<\/strong> (<a href=\"\/stock\/AMZN\">AMZN<\/a>) has established a <strong>$80 billion supplier loan facility<\/strong>. This arrangement allows the company to borrow against hardware purchases between 2027 and 2028 to maintain its aggressive data center expansion. The facility is one of the largest of its kind, reflecting a shift toward creative financing as <strong>Amazon<\/strong> (<a href=\"\/stock\/AMZN\">AMZN<\/a>) projects <strong>$220 billion<\/strong> in cash capital expenditures for 2026 alone.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Anthropic_IPO_Faces_Credit_Rating_Headwinds\"><\/span>Anthropic IPO Faces Credit Rating Headwinds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Blackstone<\/strong> (<a href=\"\/stock\/BX\">BX<\/a>) has informed investors that AI startup <strong>Anthropic<\/strong> (ticker: <strong>ANT<\/strong>) may miss out on an investment-grade credit rating after its planned mid-November IPO. Despite a projected valuation of up to <strong>$2 trillion<\/strong>, the company\u2019s S-1 filing revealed minimum computing obligations of approximately <strong>$430 billion<\/strong>. <em>The &quot;high junk&quot; rating forecast suggests that even the most valuable AI pioneers face significant hurdles in balancing massive growth with staggering operational costs.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Feds_Musalem_Signals_Potential_Rate_Hikes\"><\/span>Fed\u2019s Musalem Signals Potential Rate Hikes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>St. Louis Fed President Alberto Musalem<\/strong> stated on Friday that &quot;additional firming of monetary policy will be necessary, and soon,&quot; to combat persistent inflation. Musalem emphasized that the Federal Reserve&#39;s communication strategies should focus on the policy framework rather than specific &quot;forward guidance,&quot; which he argued is most effective when rates are at the zero bound. Markets are currently pricing in a high probability of a rate increase at the December meeting.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Energy_and_Global_Policy_Developments\"><\/span>Energy and Global Policy Developments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>Baker Hughes<\/strong> (<a href=\"\/stock\/BKR\">BKR<\/a>) weekly rig count showed the <strong>U.S. Oil Rig Count<\/strong> increased by 2 to <strong>462<\/strong>, while gas rigs fell by 2 to <strong>130<\/strong>, leaving the total count unchanged at <strong>603<\/strong>. On the geopolitical front, <strong>Canada<\/strong> and the <strong>European Union<\/strong> concluded a summit in Montreal, agreeing to define a new &quot;ever-closer association&quot; by 2027. This agreement falls short of &quot;associate membership&quot; but aims to deepen ties in critical minerals and digital trade to reduce reliance on other global powers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"OpenAI_Commits_to_Safety_Transparency\"><\/span>OpenAI Commits to Safety Transparency<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>OpenAI<\/strong> announced it will launch its first <strong>Community Safety Report<\/strong> in early 2027, focusing on violence prevention and the effectiveness of its safeguards. The company revealed it made over <strong>200 law enforcement referrals<\/strong> in the third quarter of 2026 to disrupt potential violent plots. New restrictions will also be placed on how <strong>ChatGPT<\/strong> handles queries regarding mass attacks and weapons-related information for teenage users.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nasdaq 100 plunged 3.4% and the S&amp;P 500 fell 1.7% as disappointing earnings from Amazon (AMZN) and Intel [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[31,391,3783,3806,3807,3916,23513],"class_list":["post-73891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-intc","tag-amzn","tag-bx","tag-spy","tag-qqq","tag-bkr","tag-ant"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/73891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=73891"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/73891\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=73891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=73891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=73891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}