U.S. Stock Markets Slide as Tech Earnings Spur Pushback
The U.S. stock market faltered on October 30, 2025, as investor jitters over rising costs in artificial intelligence initiatives and weaker-than-expected earnings from major tech companies triggered a broad-based retreat. The decline was especially pronounced in technology-heavy indices.
Key Market Movements
- The Nasdaq Composite fell about 1.6%, marking its largest one-day drop since early October.
- The S&P 500 dropped roughly 1%, while the Dow Jones Industrial Average declined modestly.
- Meta Platforms plunged approximately 11% after unveiling heightened capital-expenditure plans for AI, despite beating revenue estimates.
- Microsoft Corporation sank nearly 3% amid similar investor concerns around AI spending.
- On the upside, Alphabet Inc. surged around 8%, buoyed by strong ad- and cloud-business performance.
Underlying Drivers
Market participants pointed to two immediate pressure points:
- AI spending anxiety – While many tech firms continue to grow revenue, escalating investments in AI infrastructure and research are raising questions about near-term profitability and return on investment. The Meta example is emblematic.
- Interest-rate uncertainty – With the Federal Reserve signalling that further rate cuts are not guaranteed, investors are reassessing growth assumptions and equity valuations.
What to Watch
- Upcoming earnings from other major technology companies will further test investor appetite for AI-heavy business models.
- Any fresh commentary or policy signal from the Fed around rate cuts could prompt further market moves.
- The broader market’s ability to absorb tech weakness will hinge on performance in cyclical sectors such as industrials, financials, and energy.
