Update: Nasdaq Composite Marks Worst Month Since March 2025 as AI Spending Fears Rise

04:56 PM EDT, 10/30/2026 (MT Newswires) -- (Updates with latest market prices and developments.) The Nasdaq Composite recorded its steepest monthly drop since March last year, plunging on Friday amid concerns surrounding hyperscalers' surging artificial intelligence spending. The tech-heavy Nasdaq tumbled 2.9% to 25,437, marking its steepest one-day percentage decline since June 5. The S&P 500 shed 1.8% to end the session at 7,580.07, while the Dow Jones Industrial Average fell 1.1% to 51,770.31. Among sectors, tech led the rout with a decline of 4.2%, while energy paced the gainers. The Nasdaq logged a 5.3% drop for October, the biggest since March 2025. The S&P 500 saw a monthly decline of 0.9%, while the Dow notched a monthly gain of 1.7%. This week, the Nasdaq lost 2% and the S&P 500 shed 0.6%, marking their third consecutive weekly declines. The Dow fell 0.9% after three consecutive weekly wins. Shares of Amazon (AMZN) dipped 1.4% Friday as the e-commerce giant's third-quarter results trailed market expectations, with a massive ramp in AI spending sending its free cash flow deep into negative territory. The company maintained its 2026 capital expenditure outlook at about $220 billion. Earlier in the week, Alphabet (GOOG, GOOGL) said its free cash flow turned negative year-on-year in the September quarter, while Microsoft (MSFT) reported free cash flow of $18.6 billion in its fiscal first quarter. Amazon's cloud computing business is poised for strong performance ahead despite "disappointing" growth in the third quarter, Morgan Stanley said in a note. Intel (INTC) tanked nearly 29%, the second-steepest decline on the S&P 500. The company expects the personal computer market to weaken amid rising memory prices and supply constraints, while a shutdown at its chipmaking facility in Israel is projected to reduce fourth-quarter revenue by about $300 million. "PC weakness is not entirely surprising given the ongoing memory tightness," RBC Capital Markets said in a Friday client note. "However, customer inventory drawdowns appear to have accelerated in recent weeks and management expects headwinds to persist into (the first half)." Tech bellwether Nvidia (NVDA) slumped 4.2%, the biggest drop on the Dow. Reddit (RDDT) sank 29%, the worst performer on the S&P 500, while SanDisk (SNDK) lost nearly 14%, also among the notable laggards on the index -- following their latest financial results. Chevron (CVX) rose 1.8%, among the best performers on the Dow, while ExxonMobil (XOM) advanced 2.2%. The oil giants' third-quarter adjusted earnings came in above Wall Street's estimates, driven by strong refining margins. West Texas Intermediate crude oil was up 0.9% at $102.93 a barrel in Friday late-afternoon trade, while Brent climbed 2.4% to $117.64 a barrel. Both benchmarks were on track for their fourth consecutive winning month. A tanker in the Strait of Hormuz was hit Friday by explosive devices attached by a small boat, Reuters reported, citing the United Kingdom Maritime Trade Operations. It was not immediately clear who was behind the attack, according to the report. Yemen's Iran-aligned Houthi militants said Thursday they attacked several sites in Saudi Arabia, including its largest oil refinery, CNBC reported. Treasury yields were lower, with the two-year rate retreating 6.6 basis points to 4.59% and the 10-year rate off six basis points to 4.93%. The Federal Reserve will likely need to tighten monetary policy "soon" to bring inflation down to its 2% target in a timely manner, St. Louis Fed President Alberto Musalem said Friday. Spot gold lost 3.6% to $3,876.91 per troy ounce, while silver slid 5.9% to $49.28 per ounce.