Live Markets: AI spending worries spur defensive rotation

Amazon.com

30/10/2026 14:12

Nasdaq slides >2%, S&P 500 down >1%, Dow dips
Tech weakest S&P 500 sector; energy is the leading gainer
Euro STOXX 600 index off ~0.1%
Dollar gains; US crude rises >2%; gold, bitcoin both fall >2% 
US 10-year Treasury yield falls to ~4.95%
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AI SPENDING WORRIES SPUR DEFENSIVE ROTATION
Wall Street's technology sector .SPLRCT is under heavy pressure early Friday, with the Nasdaq .IXIC falling sharply after results from Amazon AMZN.O and Intel INTC.O reignited concerns about the cost of the AI buildout and how long investors may have to wait for meaningful returns.
Amazon's aggressive spending plans and Intel's warning on cash burn are prompting a broad retreat from AI-linked names. The PHLX Semiconductor Index .SOX is down more than 5%, making chip stocks among the market's biggest laggards. Precious metals miners are also under pressure, with the PHLX Gold/Silver Index .XAU also off more than 5%.
The tone across the broader market is decidedly defensive. A majority of S&P 500 .SPX sectors are in the red, led by technology, down more than 3%, and consumer discretionary .SPLRCD, off more than 1%. Investors are instead gravitating toward traditional havens within the equity market, pushing staples .SPLRCS, energy .SPNY, and healthcare .SPXHC all higher by more than 1.3%.
Not everything is following the defensive playbook, however. Transports .DJT are slightly positive, while the Nasdaq Biotech Index .NBI is up 0.6%, bucking the broader weakness and posting gains.
The shift toward traditionally defensive sectors has several groups approaching milestone closes. Healthcare and energy are both on track for record closing highs. The ProShares S&P 500 Dividend Aristocrats ETF NOBL.K, another favorite among defensive investors, is also headed toward a record close.
For the week, the Nasdaq is last down more than 1%. The Dow .DJI is down slightly, while the S&P 500 is flat. Looking at October as a whole, the Nasdaq and S&P 500 are tracking monthly losses, while the Dow remains in positive territory.
Here is a snapshot of where markets stood at around 10:03 a.m. ET.
     
(Terence Gabriel)
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EARLIER ON LIVE MARKETS:
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 )