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Nasdaq futures have dropped more than 2% on Friday, October 30, as disappointing Amazon and Intel earnings triggered another sell-off in U.S. technology stocks.
Nasdaq-100 futures fell 2.6% in premarket trading, while S&P 500 futures declined 1.12%. Dow Jones futures slipped 0.08%, with gains in healthcare, consumer staples and energy stocks helping limit losses.
The declines followed Thursday's session, when Alphabet shares plunged 12.6% after disappointing investors with its quarterly results. Concerns about artificial intelligence spending have weighed on several major technology companies this week.
Amazon shares dropped 6.5% before Friday's opening bell after its third-quarter earnings missed Wall Street expectations. Although revenue continued growing, the company's spending on new infrastructure drew attention.
In its October 29 earnings report, Amazon reported revenue of USD 201.9 billion up 12% from last year. Earnings reached USD 1.89 per share, below analysts' forecasts of around USD 1.97.
The company also reported negative free cash flow of USD 42.4 billion over the previous 12 months. A year earlier, Amazon had generated positive free cash flow of USD 14.8 billion.
Much of the spending went toward data centers and equipment needed for artificial intelligence services. Amazon maintained its 2026 capital expenditure forecast of USD 220 billion despite the growing cash outflows.
However, its cloud computing business continued expanding. Amazon Web Services generated USD 46 billion in quarterly sales representing 39% annual growth. CEO Andy Jassy expects the division to maintain strong growth in 2027 and 2028.
Intel faced an even sharper decline, losing more than 25% in premarket trading. The chipmaker's latest financial outlook disappointed investors despite an improvement in its third-quarter revenue.
According to Intel's financial results, the company's revenue rose 21% from a year ago to USD 16.5 billion, but its forecast for the coming quarter fell short of expectations. The company expects revenue of between USD 15 billion and USD 16 billion, compared with analysts' forecast of USD 17.1 billion.
Intel also expects adjusted earnings of USD 0.25 per share, below the USD 0.43 analysts had predicted. Meanwhile, its personal computing business reported a 5% decline in revenue to USD 8.1 billion.
Chief Financial Officer David Zinsner said the slowdown in PC demand could last through the first half of 2027. Meanwhile, manufacturing investments and supply constraints have placed additional pressure on the company's finances.
Losses extended beyond Amazon and Intel as investors reduced their exposure to semiconductor companies. AMD shares fell 8.3%, while Nvidia declined 3.2% before the market opened.
Broadcom dropped around 3%, while Dell Technologies and HP lost 11.8% and 9.5%, respectively. Sandisk also declined about 9% despite reporting stronger quarterly results and announcing an eight-for-one stock split.
Reddit shares fell more than 20% after management warned that daily active visitors could decline during the fourth quarter. The company's earnings report showed revenue increased 53% to USD 895 million.
Not every company faced selling pressure. Rivian Automotive gained more than 8% after reporting better-than-expected quarterly earnings. The electric vehicle maker also raised its delivery outlook for the year.
While technology shares struggled, several companies outside the sector posted gains. Procter & Gamble, Walmart and Coca-Cola each climbed around 2%, alongside healthcare companies Johnson & Johnson and Merck.
Energy stocks also attracted buyers after Chevron and ExxonMobil reported quarterly profits above expectations. Chevron shares rose 1.6%, while ExxonMobil advanced 2%.
Chevron earned an adjusted USD 5.28 per share during the quarter, helped by stronger profits from its refining business. ExxonMobil also reported higher refining margins, which supported its quarterly earnings.
Meanwhile, oil prices climbed on Friday. West Texas Intermediate crude rose 2% to USD 104.04 per barrel while Brent crude gained 2.3% to USD 117.50. Concerns about global oil supplies continued to influence trading.
Meanwhile, investors bought U.S. government bonds, pushing Treasury yields lower. The benchmark 10-year yield approached 4.91%, as demand for fixed-income investments increased.
Fresh economic figures gave investors another reason to monitor borrowing costs. The Bureau of Economic Analysis reported that annual U.S. inflation reached 3.6% in September, up from 3.4% in August.
Core inflation, which excludes food and energy, stood at 3.1%. Meanwhile, the U.S. economy expanded at an annualized rate of 3.4% during the third quarter, compared with 2.2% in the previous quarter.
The Federal Reserve held interest rates at 3.75%–4% on Wednesday. Two policymakers voted for a quarter-point increase while the remaining members supported keeping rates unchanged.
As October approaches its final trading session, the Nasdaq Composite was heading toward a 2.5% monthly loss. The S&P 500 remained on course for a 0.9% gain, while the Dow was heading toward a 2.8% advance.
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