NEW YORK — Technology stocks suffered a severe downturn on Friday, erasing more than $1 trillion in market value as investors grew increasingly skeptical over whether massive financial outlays toward artificial intelligence infrastructure will generate adequate returns.
The Nasdaq 100 index dropped 3.4% during afternoon trading, marking its steepest one-day decline since mid-June and bringing the index near correction territory—defined as a 10% drop from recent record highs. The broader S&P 500 fell 1.8%, led downward by its technology sector, which tumbled over 4.2%. Meanwhile, the Philadelphia semiconductor index sank 7.2%.
Market jitters were amplified following disappointing quarterly earnings reports released Thursday by Amazon and Intel. Intel shares plunged 29% in the chipmaker's worst single-day drop on record, driven by lower-than-expected fourth-quarter forecasts, supply chain constraints, and manufacturing shortfalls. Other semiconductor firms followed suit, with SanDisk falling 13% while AMD, ARM Holdings, Qualcomm, and Marvell each dropped approximately 10%.
