US stocks today: Dow Jones crashes 500 pts, Nasdaq over 2.5% as AI cash burn fears spark tech selloff
Economic Times 1 hr ago·30 Oct 2026, 8:19 pm
US equity markets experienced a significant selloff on Friday, with the Dow Jones Industrial Average falling over 500 points and the Nasdaq dropping more than 2.5%. This sharp decline was driven by a broad retreat in technology stocks, which were the primary drag on the market.
The sell-off was triggered by renewed investor anxiety regarding the high cost of artificial intelligence (AI) initiatives. Concerns that major tech companies are burning cash to build AI infrastructure without seeing immediate returns led to profit-taking in the sector. This fear caused investors to reassess the valuation of growth stocks.
For now, the focus remains on the earnings reports of major tech giants to see if they can justify their massive spending. Investors should also watch upcoming economic data, as a cooling economy could further pressure the tech sector. It is important to remember that market volatility is a normal part of investing.
Key takeaways
- Category: Stocks.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development and could move the stock. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
