Nasdaq falls 2.86% as AI spending fears hit tech
The Nasdaq Composite fell 2.86% on October 30 to 25,437, its biggest one-day decline since June 5, as investors questioned whether heavy artificial intelligence spending will generate returns. The Nasdaq is down 7.8% from its October 6 record high and is on track for its worst monthly performance since March 2025.
Intel shares plunged nearly 29% after its fourth-quarter outlook disappointed, marking the chipmaker’s worst daily drop since 1974. Amazon disclosed $94.8 billion in capital expenditure, mainly for AI infrastructure, alongside $42.4 billion in free cash flow outflows over the past year.
The selloff spread across chip stocks: AMD fell 10.9%, Nvidia lost 4.2%, and the semiconductor index dropped 7.2%. The S&P 500 declined 1.82% and the Dow fell 1.09%. The Nasdaq’s decline underscores growing investor scrutiny of AI investment costs and demand for clearer evidence of profitability.
Bearish
The news is mildly bearish for crypto in the short term because it signals risk aversion across growth-oriented markets. A sharp Nasdaq decline, falling semiconductor shares and concerns that AI investment may not deliver returns can prompt traders to reduce exposure to higher-volatility assets, including Bitcoin and other cryptocurrencies. If the selloff leads to broader equity weakness or tighter financial conditions, crypto could face additional pressure. Traders may watch Bitcoin’s reaction alongside Nasdaq futures, the US dollar, bond yields and crypto funding rates for signs of whether risk reduction is spreading.
The effect is indirect: the article reports no crypto-specific event, and a single session in technology stocks does not determine crypto prices. Past episodes of broad tech-led risk-off trading have sometimes coincided with crypto declines as investors cut speculative positions, although digital assets can diverge and may respond more strongly to crypto-specific flows or macroeconomic news. Over the longer term, the key issue is whether weaker confidence in AI-related spending broadens into reduced risk appetite and tighter investment conditions. If concerns remain limited to corporate earnings and chip guidance, the impact on crypto may fade; sustained equity volatility could weigh more heavily on market stability and speculative demand.