Tech stocks drag Wall Street lower as Nasdaq posts worst day since June

U.S. stocks fell sharply on Friday, with the Nasdaq posting its worst day since June as disappointing earnings from major technology companies renewed concerns over spending on artificial intelligence. The Nasdaq Composite fell 2.8%, while the Dow Jones Industrial Average lost 579 points, or 1.1%, and the S&P 500 dropped 1.8%. Amazon shares fell nearly 6% after reporting third-quarter results that missed expectations, including negative free cash flow of $42.4 billion and a maintained 2026 capital spending forecast of $220 billion. Intel shares dropped more than 5% after warning of slowing PC demand, with other semiconductor firms also declining, including AMD falling 11%, Broadcom dropping 5%, and Nvidia losing 4%. Alphabet shares continued declining Friday after falling 1.2% Thursday, amid growing scrutiny over its AI infrastructure spending.