Nasdaq 100 drops 4% as Intel plunges 30% on AI spending worries

Wall Street stocks fell sharply on Friday as disappointing results from major technology companies raised fresh concerns about the money being poured into artificial intelligence (AI). The Nasdaq 100 dropped nearly 4%, bringing it close to correction territory, while the S&P 500 fell around 2%. Intel suffered its biggest one-day fall in more than 40 years, dropping roughly 30% after its outlook missed market expectations. Amazon also slipped 2% as investors reacted to its higher spending plans, adding to concerns about the cost of building AI infrastructure. The selloff has also raised questions about whether the huge investments in AI will deliver the returns that companies have promised. The Nasdaq 100 has lost more than $1.2 trillion in market value in October. AI spending concerns weigh on technology stocks. Some of the biggest technology companies are facing questions about the strength of their main businesses, including advertising, consumer services and retail. These businesses have helped support the companies as they increase spending on AI. Together, major US technology firms are expected to spend around $750 billion on AI this year.