Big Tech earnings spark AI spending fears, stocks end week lower

Stocks reversed from early-week gains to sharp losses after disappointing Big Tech earnings reignited fears about AI spending, with the Nasdaq falling 2% for the week and 5.3% for October. The S&P 500 lost nearly 2% for the week, while the Dow fell less than 1% and gained 1.7% for the month. Semiconductor stocks surged over 9% early before tumbling, and Intel plunged over 28% Friday on a weak outlook. Microsoft, Alphabet, and Amazon earnings shifted investor focus toward financial discipline over aggressive AI investment. Defensive sectors outperformed, with healthcare leading and Eli Lilly rising over 11% to a record. FedEx gained nearly 5%, while Boeing fell 9% after pushing back its cash flow timeline. Fed rate hike expectations in December added pressure on tech borrowing concerns.