US Stock Market Plunges as Brutal Sell-Off Closes Out October
US stock markets suffered steep losses on Friday, capping off October with a severe sell-off driven by disappointing earnings from major technology giants and mounting anxieties over the sustainability of artificial intelligence spending. The Nasdaq Composite tumbled 2.8%, marking its worst monthly performance since March 2025 and leaving the index down 5.2% for October. Meanwhile, the Dow Jones Industrial Average dropped 1.2% (losing over 650 points), and the S&P 500 fell 2%.
The market downturn accelerated following weak earnings reports and cautious outlooks from Big Tech leaders. Amazon shares fell 2% after reporting a historic cash burn driven by aggressive data center and infrastructure spending, while Intel plummeted 29% in premarket trading following a soft fourth-quarter forecast. These reports compounded negative sentiment left by Alphabet's sharp decline earlier in the week, reinforcing investor fears regarding the massive financial commitments required for AI expansion.
Beyond equities, broader economic and geopolitical factors added pressure to the session. Oil prices rebounded significantly—with Brent crude reaching around $112 to $115 per barrel and WTI crude pushing past $103—bolstered by widening refining margins and renewed geopolitical tensions in the Middle East. Additionally, cryptocurrency markets faced turbulence after a historic $6.3 billion hack on the Binance exchange, which dragged Bitcoin prices down by more than 2%.
Despite the widespread losses across technology and crypto sectors, some equities found pockets of resilience. Energy majors ExxonMobil and Chevron touched record highs as widening refining margins boosted quarterly profits, while pharmaceutical firm AstraZeneca posted a notable earnings beat ahead of the opening bell.
