Tech stocks tumble as AI rally fades

A sell-off for tech stocks deepened Friday on concerns that Wall Street's AI-driven rally pushed prices too high, with the S&P 500 dropping 1.8% and the Nasdaq composite down 3% as of 12:55 p.m. Eastern time. Intel led the decline, tumbling 30.1% toward its worst day since 1974 after issuing a weak profit forecast, while Amazon fell 2.3% on weaker-than-expected summer profit and heavy cash burn from AI investments. Alphabet dropped over 12% a day earlier, and Nvidia fell 4.7%, as investors question whether massive AI spending will yield sufficient returns. Outside tech, stocks were more resilient, with ExxonMobil, Chevron, and Mondelez rising on stronger profits. Treasury yields eased to 4.94%, and global markets were mixed, with South Korea's Kospi down 3.5% and Hong Kong's Hang Seng up 1.5%.