Live Markets: AI spending fears spark tech selloff, defensives shine

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30/10/2026 20:23

Main US indexes decline; Nasdaq off most, ending down ~2.9%
Tech is weakest S&P 500 sector; energy is the leading gainer
Dollar gains; US crude rises; bitcoin falls ~2.5%; gold drops ~3.5%
US 10-year Treasury yield falls to ~4.93%
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AI SPENDING FEARS SPARK TECH SELLOFF, DEFENSIVES SHINE
US stocks tumbled Friday, with the Nasdaq .IXIC falling to a three-month low after disappointing results from Intel INTC.O and Amazon AMZN.O intensified concerns about the enormous sums being poured into AI and when, or whether, those investments will begin to pay off.
The damage was concentrated in technology, but it was severe. Both the Nasdaq Composite .IXIC and S&P 500 .SPX suffered their biggest daily declines since early June. The technology sector .SPLRCT fell more than 4%, marking its worst one-day drop since then.
Despite the tech selloff, much of the broader market held up relatively well. A majority of S&P 500 sectors finished in positive territory, led by energy .SPNY and consumer staples .SPLRCS, both of which gained more than 1%.
Chip stocks bore the brunt of the selling. The PHLX Semiconductor Index .SOX plunged more than 7% for its biggest daily percentage drop since late June. Precious metals miners were also caught up in the selloff, with the PHLX Gold/Silver Miners Index .XAU tumbling more than 5%.
There were still a few bright spots. Housing-related shares .HGX and transports .DJT managed to end the session modestly higher, while the S&P 500's energy and healthcare sectors closed at fresh record highs. The Dividend Aristocrats ETF NOBL.K also notched a record close.
In many ways, October lived up to its reputation for volatility and a preference for defense. The Dividend Aristocrats ETF posted its biggest monthly gain since October 2022, while the S&P 500 Low Volatility ETF SPLV.P enjoyed its strongest month since December 2021. At the same time, the iShares Momentum Factor ETF MTUM.K slumped more than 10%, highlighting just how sharply leadership shifted during the month.
For the week, all three major indexes finished lower.
October was especially tough on growth-oriented stocks. The Nasdaq posted its biggest monthly decline since March 2025, while the S&P 500 also ended the month lower. The Dow .DJI, however, managed to finish October in positive territory.
Meanwhile, Treasury yields reflected a similar move toward safety. The 10-year Treasury yield US10YT=RR is down nearly 37 basis points for the month, on track for its biggest monthly decline since December 2023.
Here is a snapshot of where markets stood shortly after 4 p.m. ET.
(Terence Gabriel)
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EARLIER ON LIVE MARKETS:
GOLD COULD FACE FURTHER WEAKNESS AS HAWKISH FED AND AI WORRIES LOOM CLICK HERE
PESSIMISM EASES, BUT AAII INVESTORS REMAIN WARY CLICK HERE
EMPLOYMENT COST GROWTH COOLS IN Q3 CLICK HERE
AI SPENDING WORRIES SPUR DEFENSIVE ROTATION CLICK HERE
BENCHMARK TREASURY YIELD RETREAT PUTS KEY TREND SUPPORT IN FOCUS CLICK HERE
DOLLAR NO HAVEN IN A TECH SELLOFF CLICK HERE
GULF ESCALATION FEARS MEAN IT'S TIME TO EXIT LONGER-DATED BONDS CLICK HERE
EUROPE, CANADA TOP FIXED-INCOME PICKS — SCHRODERS CLICK HERE
EUROPE ON THE SIDELINES CLICK HERE
EUROPE BEFORE THE BELL: WHEN WALL STREET SNEEZES CLICK HERE
MORNING BID: ONE LAST CENTRAL BANK SURPRISE CLICK HERE
     

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(Terence Gabriel is a Reuters market analyst. The views expressed are his own )