Nasdaq Falls 1.4% as AI Spending Concerns and Mixed Earnings Drive Broader US Decline

Mumbai, 30 October 2026: US equities closed lower on Thursday, with technology and communication services shares leading a broad decline as investors assessed a fresh round of quarterly earnings and renewed questions about artificial intelligence spending.

The Dow Jones Industrial Average fell 132.54 points, or 0.25%, to 52,342.56, while the S&P 500 dropped 0.30% to 7,720.41. The Nasdaq Composite lost 1.38% to 26,184.72. Small-cap stocks advanced, with the Russell 2000 gaining 0.75% to 2,851.77, as stronger-than-expected gross domestic product data supported domestically oriented shares and defensive sectors attracted support.

Nasdaq Sinks 1.6% as Alphabet Slump Drives Broad US Tech Decline Today

The Nasdaq Composite opened at 26,201.82 and closed at 26,184.72, marking a loss of 365.13 points, or 1.38%. The index touched an intraday high of 26,286.46 and a low of 26,053.16 during the session.

The decline was driven primarily by a steep fall in Alphabet shares, which dropped 12.69% after the company reported third-quarter results that missed expectations on adjusted earnings per share and revenue, and recorded negative free cash flow of $9.07 billion while maintaining full-year capital expenditure guidance of $195 billion to $205 billion.

The selloff in Alphabet, the parent of Google, rippled across technology and communication services shares, with Amazon falling 4.14% ahead of its own earnings report and Microsoft slipping 0.11%. Among other Nasdaq constituents, Marvell Technology plunged 13.28% on reports of advanced talks to acquire Lumentum Holdings, while KLAC gained 5.49% and NXPI rose 5.66%, providing limited support to the index.

Dow Jones Falls 133 Points as Caterpillar Slide Weighs on Blue Chips

The Dow Jones Industrial Average opened at 52,475.10 and closed at 52,342.56, losing 132.54 points, or 0.25%. The index reached an intraday high of 52,405.88 and a low of 52,086.13.

Caterpillar was the biggest drag on the price-weighted index, tumbling 9.29% despite reporting third-quarter adjusted earnings of $7.20 per share on revenue of $20.68 billion, as sales in its construction industries business came in slightly below estimates. Alphabet also weighed heavily on the Dow with a 12.69% decline, while Amazon fell 4.14%.

On the positive side, Merck gained 3.84% after topping quarterly estimates, Home Depot rose 3.59%, and McDonald’s added 2.74%, reflecting strength in defensive and consumer-oriented names that helped limit the index’s losses.

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S&P 500 Drops 0.3% as Tech Losses Offset Defensive Sector Gains Today

The S&P 500 opened at 7,743.98 and ended at 7,720.41, a decline of 23.57 points, or 0.30%. The benchmark traded between an intraday high of 7,732.21 and a low of 7,690.94.

The index’s performance reflected a sharp divergence beneath the surface, with technology and communication services shares under pressure while defensive sectors attracted support. Communication services recorded the steepest decline, falling 1.91%, while information technology slipped 1.37%.

In contrast, health care advanced 2.06%, real estate gained 1.73%, and financials added 1.69%, with utilities and consumer staples also finishing higher. Among individual movers, ServiceNow plunged 26.96% and Fortinet tumbled 20.09% after their quarterly results, while Eli Lilly surged 6.57% and Merck rose 3.84%, illustrating the wide dispersion across the benchmark.

Russell 2000 Gains 0.8% as GDP Strength Lifts Smaller Company Shares

The Russell 2000 opened at 2,830.51 and closed at 2,851.77, gaining 21.27 points, or 0.75%. The small-cap benchmark reached an intraday high of 2,868.37 and a low of 2,841.43. The advance came as third-quarter gross domestic product growth exceeded expectations at 3.4%, providing a counterweight to the technology-led weakness in large-cap indices.

The index’s positive close marked its third consecutive session of gains and represented a rebound of roughly 5% from its mid-October slump. The Russell 2000 has returned 15% year-to-date. Within the index, Glaukos surged 32.91%, Bausch Health gained 28.40%, and Porch Group rose 28.16%, while Iovance Biotherapeutics plunged 35.45% and FormFactor fell 11.65%, reflecting significant dispersion among smaller companies.

The session’s breadth underscored the rotation into smaller shares, with 764 stocks in the Russell 1000 higher and 256 lower, roughly three gainers for every loser. The equal-weight S&P 500 rose 0.9%, further illustrating the broad-based nature of gains outside mega-cap technology.

The Russell 2000’s gain occurred alongside a 1.38% decline in the Nasdaq Composite and a 0.30% drop in the S&P 500, highlighting the divergence between small-cap and technology-heavy benchmarks. The small-cap benchmark’s advance was part of a broader rotation that saw investors favour domestically oriented shares over mega-cap technology names. The Russell 2000’s intraday range of 2,841.43 to 2,868.37 reflected volatility during the session. The small-cap benchmark’s performance reflected the market’s response to stronger economic data and a modest retreat in oil prices, which supported domestically oriented and cyclical shares.

S&P 100 Falls 0.9% as Mega-Cap Technology Shares Retreat During Trading

The S&P 100 opened at 3,814.06 and finished at 3,808.74, recording a loss of 34.43 points, or 0.90%. The large-cap index traded between 3,822.46 and 3,801.10 during the session.

The decline was concentrated in mega-cap technology and communication services constituents, with Alphabet’s 12.69% drop and Amazon’s 4.14% decline exerting the heaviest influence. Microsoft’s 0.11% slip added to the pressure, while gains in Merck, Home Depot, and McDonald’s provided partial offset.

The index’s movement reflected the broader rotation away from high-multiple growth shares toward defensive and value-oriented sectors that characterised the session.

Dow Composite Gains 0.1% as US Transport and Utility Indices Diverge Today

The Dow Jones Composite Average opened at 16,358.18 and closed at 16,418.96, gaining 9.68 points, or 0.06%. The index traded between a high of 16,456.04 and a low of 16,358.18.

The Dow Jones Transportation Average ended at 23,223.56, compared with an opening level of 22,371.54, representing a gain of 3.57%, supported by strength in industrial and logistics shares. The Dow Jones Utility Average closed at 1,104.22, rising 1.16% from its opening level of 1,098.74, as defensive demand lifted utility shares.

The divergence between the transport and utility averages highlighted the selective nature of the session’s gains.

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SOX Falls 1.4% as Semiconductor Shares Retreat Amid Broader AI Spending Concerns

The Philadelphia Semiconductor Index opened at 11,496.20 and closed at 11,518.20, losing 165.80 points, or 1.42%. The sector benchmark reached an intraday high of 11,620.79 and a low of 11,363.81. Marvell Technology was the biggest decliner within the index, falling 13.28% on reports of its potential acquisition of Lumentum, while Micron dropped 4.98% and Intel declined 3.61%. Applied Materials gained 1.36% and NXPI rose 5.66%, but their advances were insufficient to offset the broader weakness in semiconductor shares. The iShares Semiconductor ETF (SOXX) was down 1.5% in US trading Thursday, with some references citing a decline of more than 2%.

The Roundhill Memory ETF (DRAM) was down 4% after jumping 7% yesterday. Heavily weighted component Samsung Electronics ended 4% lower in South Korean trading today. The broader weakness in semiconductor shares came as memory and other AI-tied stocks moved lower after recording sharp gains each of the first three trading days this week.

The Philadelphia Semiconductor Index includes the 30 largest chip stocks traded in the US. Other semiconductor-related constituents such as Entegris rose nearly 2% to 162.41 after reporting third-quarter adjusted earnings of $1.23 a share on sales of $1.01 billion, while Silicon Motion rose more than 2% to 224.12 after posting quarterly results.

The sector benchmark’s daily performance reflected the broader reassessment of artificial intelligence spending across chip and hardware companies. The decline in semiconductor shares coincided with the technology-led selloff that weighed on the Nasdaq Composite and the S&P 500 during the closing session on Thursday.

NYSE Composite Gains 0.9% as Broad Financial and Industrial Shares Advance Today

The NYSE Composite opened at 24,340.94 and closed at 24,469.45, recording a gain of 208.17 points, or 0.86%. The index traded between 24,514.78 and 24,340.94 during the session.  The advance was supported by strength across financial and industrial shares, with Mastercard gaining 4.15% and General Electric rising 4.03%, while energy and technology names lagged.

The NYSE Composite’s positive close stood in contrast to the declines in the technology-heavy Nasdaq and the large-cap S&P 500, reflecting the rotation into economically sensitive and defensive sectors.

S&P MidCap 400 and SmallCap 600 Rise on Stronger GDP Data Today

The S&P MidCap 400 opened at 3,663.37 and closed at 3,707.33, gaining 43.63 points, or 1.19%, with an intraday range of 3,663.37 to 3,711.60. The S&P SmallCap 600 opened at 1,705.94 and ended at 1,727.24, rising 27.45 points, or 1.61%, after trading between 1,705.94 and 1,727.44.

The two benchmarks benefited from the stronger-than-expected GDP reading, which supported cyclical and domestically oriented shares. Within the mid-cap and small-cap universe, Textron gained 11.70% and Crocs surged 25.62%, while Sprouts Farmers Market plunged 22.58%, reflecting the mixed impact of earnings across smaller companies.

Alphabet Slump and Oil Price Decline Shape Lower US Closing Session Today

The principal catalyst for the session was the sharp decline in Alphabet shares following its third-quarter earnings report, which revived concerns about the scale and returns of artificial intelligence spending across major technology companies.

Alphabet fell 12.69%, on track for its worst session since its 2004 listing, erasing approximately $470 billion in market value by midday. The selloff extended to other technology and software names, with ServiceNow plunging 26.96% and Fortinet tumbling 20.09% after their own quarterly results, while the iShares Expanded Tech-Software Sector ETF slid 4.1%.

A second catalyst came from oil markets, where prices retreated after reports of diplomatic outreach between the United States and Iran. West Texas Intermediate crude fell 1.93% to $99.29 a barrel, while Brent crude declined 1.38% to $108.85, easing pressure on energy costs but weighing on energy sector shares.

The combination of technology weakness and lower oil prices shaped a session in which defensive sectors and small-cap stocks outperformed, while the major technology-heavy indices closed lower.

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VIX Falls 3.5% to 16.91 as Volatility Eases Despite Tech Selloff Today

The CBOE Volatility Index changed -3.5% to 16.91, compared with its previous close of 17.52. The index measures expected volatility in the S&P 500 over the coming 30 days. Its decline during the session coincided with the rotation into defensive sectors and the relatively orderly decline in the broad market, even as technology shares sold off sharply. The CBOE Nasdaq Volatility Index moved to 24.79, while longer-dated volatility measures also reflected a calmer backdrop for equities outside the technology complex.

Health Care Gains 2.1% as Communication Services Falls 1.9% Across US Sectors

Performance across the 11 S&P 500 sectors was mixed, with eight groups finishing higher and three lower. Health care recorded the strongest move at 2.06%, followed by real estate at 1.73% and financials at 1.69%. Utilities gained 1.58%, consumer staples rose 1.00%, consumer discretionary added 0.84%, industrials advanced 0.83%, and materials gained 0.82%.

On the downside, communication services declined 1.91%, information technology fell 1.37%, and energy slipped 0.07%. The sector movements reflected the session’s rotation away from technology and communication services toward defensive and rate-sensitive groups, with health care supported by strong earnings from pharmaceutical constituents.

Magnificent Seven Retreat as Alphabet and Amazon Losses Weigh on Broad Indices

Among the Magnificent Seven, Alphabet moved -12.69%, Amazon changed -4.14%, and Microsoft recorded -0.11%. Meta Platforms gained 1.95%, Apple rose 1.50%, and Nvidia slipped 0.83%, while Tesla declined 0.23%.

The group’s collective weakness, particularly in Alphabet and Amazon, contributed to the decline in the Nasdaq Composite and the S&P 500, offsetting gains in defensive sectors and smaller companies.

The Roundhill Magnificent Seven ETF, which tracks the group, was almost 2% lower during the session. The divergence within the group reflected the selective nature of the technology selloff, with some mega-cap shares recording gains even as the broader technology and communication services sectors declined. The group’s performance remained a key influence on the major US equity benchmarks during the closing session.

Software Stocks Tumble as ServiceNow and Fortinet Record Sharp US Declines Today

Software stocks were sharply lower, with the iShares Expanded Tech-Software Sector ETF falling 4.1%. ServiceNow plunged 26.96% after its quarterly results missed profit estimates, while Fortinet tumbled 20.09% despite beating earnings expectations, as its service revenue guidance disappointed.

The weakness in software extended to other names, with Oracle falling 3.45% and Salesforce dropping 4.67%. Financial stocks recorded gains, with Mastercard rising 4.15% and Visa adding 2.53%, while energy stocks moved lower alongside crude oil prices. AI and growth stocks were mixed, with semiconductor shares under pressure but some industrial technology names advancing.

GDP Grows 3.4% as PCE Inflation Accelerates to 3.6% During September Month

The latest economic data showed US gross domestic product grew at an annualised rate of 3.4% in the third quarter, exceeding expectations of 3.1% and accelerating from 2.2% in the second quarter.

The personal consumption expenditures price index rose 0.5% in September, putting annual inflation at 3.6%, up from 3.4% a month earlier. Core PCE, which strips out food and energy, increased 0.3% month over month and 3.1% year over year.

The releases provided the latest information on growth and inflation during the session, with the stronger GDP reading supporting cyclical and small-cap shares while the inflation data reinforced expectations for a potential rate hike in December.

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Fed Holds Rates at 3.75%-4% as Treasury Yields Retreat Across Curve Today

The Federal Reserve remained a key focus as markets assessed the central bank’s decision to hold interest rates unchanged at 3.75% to 4% at its October meeting. The decision included two dissents in favour of a rate hike, reflecting concerns about elevated inflation.

The 2-year US Treasury yield stood at 4.66%, while the 5-year yield was 4.80%. The 10-year Treasury yield stood at 4.98%, and the 30-year yield was 5.33%. The yield curve changed as shorter-dated yields declined more than longer-dated yields, reflecting the market’s assessment of the Fed’s policy stance and the incoming economic data.

Brent Crude Falls 1.4% to $108.85 as Diplomatic Signals Ease Supply Fears

Brent crude traded at $108.85, changing -1.38%, while WTI crude stood at $99.29, moving -1.93%. Gold traded at $4,024.29, changing -1.09%, while silver moved -3.33% to $52.15. Copper changed -1.80% to $6.49, and natural gas moved -2.61% to $2.65. The commodity moves followed reports of diplomatic outreach between the United States and Iran, which eased concerns about supply disruptions and prompted a retreat in crude oil prices.

US Vice President JD Vance reportedly reached out to Mohsen Rezaei, secretary of Iran’s top security body, in hopes of restarting peace negotiations. The potential for diplomatic engagement prompted profit-taking, trimming the geopolitical risk premium after Brent rallied over 10% this month. Gold’s decline came as the Federal Reserve held rates steady while offering little guidance on future moves, leaving open the possibility of a rate hike before year-end.

Dollar Index Slips 0.1% to 102.19 as Euro and Pound Advance Today

The US Dollar Index moved -0.12% to 102.19. EUR/USD stood at 1.1154, USD/JPY traded at 157.84, and GBP/USD was at 1.3327. Currency movements followed the Fed’s decision to hold rates steady and the release of economic data, with the dollar easing against the euro and pound while remaining little changed against the yen.

Traders priced an 84% likelihood that the Fed would raise rates at least a quarter-percentage point at its December meeting, providing underlying support for the dollar. The release of stronger-than-expected third-quarter GDP growth at 3.4% and September PCE inflation at 3.6% reinforced expectations for a year-end rate hike, limiting the dollar’s decline.

The euro advanced as European markets closed at their highest levels since early September, supported by strong corporate earnings and the European Central Bank’s decision to hold rates steady.

The closing session was shaped by Alphabet’s steep decline and renewed scrutiny of AI spending, alongside a retreat in oil prices and stronger GDP data. The major US indices finished lower, while sector, bond, commodity, and currency markets recorded the changes outlined above. These figures provide a factual summary of the session and its key market developments.