Tech stocks plunge amid AI investment concerns

On October 30, 2026, the Nasdaq Composite index fell by 7.8% from its recent high, marking its worst performance since March 2025. Intel and Reddit shares dropped nearly 29%, while AMD fell 13%. This decline followed a week of declines for major tech firms, including Microsoft, Meta, Amazon, and Alphabet, which all fell between 1% and 2% on the day. Kate Macro noted that these four companies accounted for over a third of the S&P 500’s capital expenditures in the past year, with expectations of further growth. John Higginson of Kate Macro warned that investors are growing concerned about how much these firms are investing and how they are funding these projects. The sell-off extended beyond tech, with silver falling 6% and gold down 3.5%, while U.S. Treasury prices rose. Oil prices also climbed 2%, raising concerns about the U.S. economy’s reliance on AI infrastructure. Financial stocks like Goldman Sachs and J.P. Morgan also fell. Brian Jacobsen of Annex Wealth Management noted that investors are now actively deciding which companies will benefit from AI investments. Meanwhile, hackers stole over $60 billion from Binance, causing Bitcoin to drop 3%. Investors are now watching closely to see if the market can recover in November.