Nasdaq Has Its Biggest Drop Since June as AI Spending Worries Grow

US tech stocks took a hard hit on October 30. The Nasdaq Composite had its biggest single-day drop since June. Intel and Reddit both fell 29%, SanDisk dropped 13%, and Microsoft, Meta, Amazon and Alphabet slid another 1% to 2%.

The selloff spread wider. Silver fell 6% in one day, gold dropped 3.5%, and Goldman Sachs lost 4%. Bitcoin fell 3% after hackers stole over $6 billion from Binance, and oil rising 2% added to worries about the US economy.

Capital Economics noted that the four tech giants' capital spending over the past 12 months makes up more than a third of all capital spending by S&P 500 companies, and it partly relies on outside funding. Investors are uneasy about how much is being spent and how it's raised.

The Nasdaq 100 fell 3.5% on Friday, and the composite is down 7.8% from its peak. October was its worst month since March 2025. Many investors are staying on the sidelines, waiting to see if the market can steady in November.