A sharp sell-off in artificial intelligence and technology shares accelerated on Friday, dragging major stock indices lower as investors questioned whether heavy, debt-financed spending across the sector continues to justify lofty valuations.
The S&P 500 index declined more than 1 percent during early trading in the final session of the month, accompanied by steep losses among technology firms. The tech-focused Nasdaq index dropped more than 2 percent.
Individual corporate earnings reports catalyzed much of the downward pressure. Shares of Intel plunged more than 25 percent after the semiconductor manufacturer released financial results that missed Wall Street expectations. Meanwhile, Amazon shares fell 3 percent following an earnings report that also trailed analysts’ forecasts.
Despite the retreat in heavyweight technology names, the broader market displayed notable resilience. Investors reallocated capital into sectors that had languished in recent years, finding support in energy companies, utilities, and makers of everyday consumer goods.
Shares of consumer staples companies advanced 1.5 percent on Friday, while energy giant Exxon Mobil saw its stock rise 2 percent.
Market participants noted that the sectoral rotation mirrors a broader trend observed throughout October, helping alleviate concerns that any downturn in artificial intelligence would trigger a wider economic contagion. Rather than fleeing equities altogether, investors appear to be shifting capital internally across different market segments.
Despite Friday’s losses, the S&P 500 remained on track to record only a minor contraction for October, following a modest 0.5 percent decline in September. The benchmark index continues to hover just slightly below its all-time record high.
