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Nasdaq falls 2.86% as Intel plunges 28.6% in AI chip selloff
Intel's weak fourth-quarter forecast and doubts over AI spending hit US tech shares on Friday, after Southeast Asian markets had already closed for the week.
Key takeaways
- The Nasdaq Composite closed down 2.86% at 25,437.00 at the close (20:00 UTC) on Friday, Oct 30, 2026, according to Yahoo Finance data and TradingKey.
- Intel fell 28.58% to $65.76 after a weak fourth-quarter outlook, and the Philadelphia Semiconductor Index (SOX) dropped 7.2%, TradingKey reported.
- NBC News tied the selloff to doubts that Big Tech's AI data center spending is paying off, after results from Amazon and Intel.
- Southeast Asian markets had already closed on Friday before Wall Street opened; Monday, Nov 2 is the first ASEAN session to trade after the drop.
The Nasdaq fell 2.86% on Friday, Oct 30, 2026, ending at 25,437.00 at 20:00 UTC, as an Intel plunge of more than 28% dragged chip stocks lower and revived doubts about AI spending, according to Yahoo Finance data, NBC News and TradingKey.
The Nasdaq selloff matters for ASEAN investors because it landed after Jakarta, Singapore and other regional exchanges had closed for the week, so local markets have not yet traded on it.
What happened
Selling in technology shares deepened through the US afternoon session. NBC News reported that the Nasdaq 100 was down 3.4% in afternoon trading, its worst one-day drop since mid-June, and close to correction territory, defined as a fall of 10% or more from a record high. The S&P 500 technology sector fell more than 4.2%, the worst of the index's sectors, NBC said.
At the close, the S&P 500 was down 1.82% at 7,580.07 and the Dow Jones Industrial Average was down 1.09% at 51,770.31, according to TradingKey. TradingKey also reported that 29 of the 30 stocks in the SOX fell, and that money moved from AI-related shares into defensive sectors such as consumer staples and healthcare.
| Index / stock | Close, Oct 30, 2026 | Change |
|---|---|---|
| Nasdaq Composite | 25,437.00 | -2.86% |
| S&P 500 | 7,580.07 | -1.82% |
| Dow Jones Industrial Average | 51,770.31 | -1.09% |
| Philadelphia Semiconductor Index (SOX) | 10,688.8 | -7.2% |
| Intel (INTC) | $65.76 | -28.58% |
| Amazon (AMZN) | $240.35 | -1.41% |
Data as of the US close (20:00 UTC) on Oct 30, 2026. Sources: Yahoo Finance (Nasdaq Composite), TradingKey (other rows).
What drove the drop
Intel's outlook
Intel reported third-quarter revenue of $16.5 billion, up 21% from a year earlier, in its earnings release filed with the US Securities and Exchange Commission on Oct 29. But it guided fourth-quarter revenue to $15.0 billion to $16.0 billion, below the third quarter, with non-GAAP earnings of $0.25 per share. Its Client Computing and Physical AI unit, which sells PC chips, saw revenue fall 5% to $8.1 billion.
Chief executive Lip-Bu Tan said in the release that "demand for our CPUs remains robust" despite "near-term headwinds across the PC industry." On the earnings call, he said he was "disappointed that we were not able to meet strong customer demand in this quarter," according to NBC News, which linked the weaker forecast to supply chain problems. NBC described Intel's fall as its worst single-day drop on record.
Amazon and AI spending
NBC News reported that Amazon's AI spending rose faster than expected while growth in its core online shopping business slowed. Amazon chief executive Andy Jassy said on the earnings call that the company would "expect to spend meaningfully more in 2027," according to NBC. Amazon shares recovered from early losses to close down 1.41%, TradingKey said.
Other chipmakers fell sharply. TradingKey reported declines of more than 10% for AMD, more than 11% for Qualcomm and more than 5% for TSMC and Broadcom.
What we know and what we don't know yet
- Known: the Nasdaq closing level and decline, Intel's guidance (from its SEC filing), and the size of the chip selloff.
- Known: NBC News and TradingKey both cite disappointing results from Intel and Amazon and doubts over the payoff from AI investment as the main drivers.
- Not yet known: how Asian and Southeast Asian markets will respond when trading resumes on Monday, Nov 2.
Background
The fall extends a weak month for US tech. Based on Yahoo Finance daily closes, the Nasdaq Composite ended October 5.3% below its Sept 30 close of 26,861.06, 2.0% lower over the week, and 7.8% below its October high close of 27,599.79 on Oct 6. Chip stocks also slumped on Oct 22 over AI cost worries, as covered in our report on that semiconductor selloff. A day before Friday's drop, Alphabet shares sank after its results, as detailed in the US stocks brief for Oct 29. Investors had been watching these reports closely, as outlined in our guide to Big Tech earnings and AI capex.
What it means for ASEAN investors
Friday's US selloff did not reach Southeast Asian prices on Friday. Indonesia's IDX Composite (IHSG) closed down 0.80% at 5,057.05 at 09:00 UTC, and Singapore's Straits Times Index closed down 0.36% at 5,376.74 by 09:20 UTC, according to Yahoo Finance data. Both closes came hours before Wall Street opened at 13:30 UTC. The IHSG session and its local drivers are covered in our Indonesia stocks brief for Oct 30.
The Intel news has a direct regional link: the company runs campuses in Penang and Kulim, Malaysia, including assembly and test manufacturing, according to InvestPenang, the Penang state investment agency. How Asian chip-heavy markets reacted to the earlier Oct 22 slide is covered in our Kospi report. Whether a similar move hits ASEAN technology and semiconductor-linked shares on Nov 2 has not been determined.
Frequently asked questions
Why did the Nasdaq fall on October 30, 2026?
The Nasdaq Composite fell 2.86% to 25,437.00 as Intel dropped 28.58% after a weak fourth-quarter outlook and chip stocks slid, with NBC News and TradingKey citing doubts about returns on Big Tech's AI spending after Amazon and Intel results.
How much did Intel stock fall on October 30, 2026?
Intel closed down 28.58% at $65.76, according to TradingKey. NBC News described it as the stock's worst single-day drop on record.
Did ASEAN stock markets react to the Nasdaq drop on October 30?
Not on Friday. Indonesia's IHSG and Singapore's Straits Times Index closed before Wall Street opened at 13:30 UTC. Monday, Nov 2, 2026 is the first ASEAN session after the drop.
This article is for information only and is not investment advice.
