Nasdaq drops 2% as Amazon and Intel earnings spark tech sell-off

The Nasdaq 100 plunged over 2% on Friday, driven by dismal third-quarter earnings from Amazon and Intel that reignited fears of an AI industry slowdown. Investors fled tech stocks for safe havens like Treasurys, with the 10-year yield dropping to 4.92%. Amazon fell up to 7% after missing earnings and revenue expectations, posting negative cash flow of $7.6 billion for a second straight quarter due to AI spending. Intel cratered 26% on weak fourth-quarter guidance, forecasting a PC market slowdown into 2027 and warning it may not generate free cash flow that year. The sell-off hit chip and neocloud ETFs hard, with the iShares Semiconductor ETF down 6% and Roundhill Neocloud down 42% from its peak. Strategists noted renewed fears over AI monetization, though some called the pullback a normal correction in early-stage AI development.