Nasdaq falls 2.86% as technology shares lead US selloff

The Nasdaq Composite led US stock losses in the completed 30 October 2026 session, with selling spreading across chipmakers after Intel’s results.

The selling followed Alphabet’s October 29 slump. CNA’s market report said Alphabet had disclosed that heavy superintelligence (SI) spending turned its cash flow negative. Intel’s and Amazon’s results also showed that they used up cash while investing heavily in SI-related development.

Analysis

Chip shares fall as analysts question investment returns

Intel shares plunged 28.6%. The PHLX semiconductor index, which tracks chip stocks, finished down more than 7%, its biggest daily decline since late June, after touching its lowest level since May.

Gene Goldman, Cetera’s chief investment officer, said cash burn and elevated capital expenditure—spending on long-lived assets such as buildings and equipment—raised questions about whether SI investments would generate enough returns to justify their cost.

Capital spending buys or improves long-lived assets, unlike ordinary running costs. Cash burn means net cash use. Free cash flow generally measures cash remaining after operating needs and capital spending, though calculation methods vary. It differs from accounting profit because it reflects capital purchases and working-capital changes and excludes noncash items; capitalized costs are generally depreciated or amortized over several years.

Sahak Manuelian, Wedbush Securities' managing director for global equities sales and trading, offered another explanation: earlier steep gains in SI-related shares had made the reversal especially sharp. He said investors were beginning to pull money out and move it into other areas.

Bonds and defensive stocks rise

Consumer staples and utilities rose as investors sought safer holdings. Energy was the day’s strongest sector, supported by rising oil prices and results from Exxon Mobil and Chevron.

US Treasury prices also rose as investors sought safety. The benchmark 10-year yield fell 5.8 basis points to 4.931%; a basis point is one-hundredth of a percentage point.

Looking beyond the session, Intel said demand for personal computers had slowed and that the slowdown could persist through 2027.