GoKawiilNasdaq slides 2% weekly, 5.3% in October as tech earnings disappoint and Intel plunges 28%
US stocks swung from early-week gains to steep losses, with the Nasdaq falling 1.4% Thursday and nearly 3% Friday after weak tech earnings, ending the week down 2% and October down 5.3%. The S&P 500 dropped roughly 2% for the week while the Dow, buoyed by a shift into defensive stocks, lost under 1% weekly but gained 1.7% for the month. Chipmakers initially rallied on Anthropic's IPO filing and SK Hynix's record profit, but Intel's weak outlook sent its shares down more than 28% Friday, and Fed Chairman Kevin Warsh's hawkish comments on inflation added to investor unease.
GoKawiil's interpretation of the reporting above, not reported fact.
The sharp reversal suggests investor confidence in the AI trade remains fragile, with strong earnings from chipmakers no longer enough to offset fears that Big Tech may be overspending on AI infrastructure. Warsh's comments could signal that the Fed sees less room for rate cuts than markets had hoped, which may further pressure highly valued tech stocks reliant on cheap borrowing. The rotation into defensive names within the Dow may indicate investors are hedging against continued volatility in growth stocks.
- Nasdaq fell 2% for the week and 5.3% for October despite an early rally past 2% gains.
- Intel shares dropped over 28% Friday after a weak outlook, becoming the week's worst performer.
- Fed Chairman Kevin Warsh's hawkish inflation remarks raised expectations of another rate hike, adding pressure on tech valuations.
Source: cnbc.com — Alexa Lomonaco, 2026-10-31
Published there as: “Stocks started the week with promise but ended in despair. Our take on the big reversal”
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