The Finance Class

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Category: Stock Market

Morgan Stanley Cuts Coinbase to Underweight and Slashes Its Price Target to $120

Introduction

Morgan Stanley has cut its view on Coinbase. Coinbase is a big company where people buy and sell crypto. Crypto means digital money, like Bitcoin. Morgan Stanley is a big bank. It now rates Coinbase as underweight. That is a simple way to say it thinks the stock may do worse than other stocks.

What Happened

Morgan Stanley cut Coinbase from equal-weight to underweight. Equal-weight means about the same as other stocks. Underweight means less good than other stocks. It also cut its price target from $258 to $120. A price target is a guess about what a stock could be worth later. That cut is 53%. That is more than half. Analyst Michael Cyprys wrote the note on Monday, November 2, 2026. He said, “Confidence in the earnings recovery has deteriorated.” Earnings mean the money a company makes. Recovery means getting better after a weak time.

Why It Happened

Crypto trading has been slow. People are trading less. That hurts Coinbase. Coinbase makes much of its money from fees when people trade. Fees are small charges for a service. When trading is slow, those fees fall. Morgan Stanley also worries about the future. It cut its 2027 revenue guess by 28%. Revenue means money coming in. It cut its 2027 adjusted EBITDA guess by 47%. EBITDA is a simple way to look at profit before some costs. For 2028, it cut revenue by 18% and adjusted EBITDA by 25%. It now expects $2.4 billion in normalized EBITDA in 2028. That is about 14% below 2025. It also cut the value it puts on that profit from 20 times to 12 times.

The downgrade came after a weak third quarter. Coinbase reported $1.22 billion in revenue last Thursday. That was down 35% from a year earlier. Transaction revenue fell 44% to $590 million. Subscription and services revenue fell 20% to $570 million. Crypto trading volume fell 10% in the quarter. Price swings were also very small.

Key figures:

Old price target: $258. New price target: $120. Cut: 53%. Old rating: equal-weight. New rating: underweight. Shares in early trading: down 2.3% to $140.25. Fall last week: 10%. Third-quarter revenue: $1.22 billion, down 35% from a year earlier.

Why It Matters

A downgrade can change how people see a stock. It does not mean the company will fail. It means one big bank is less sure about it now. Coinbase still runs a large crypto exchange. But its main business depends on trading. When trading is quiet, money comes in more slowly. That is why this news matters to people who follow crypto stocks.

What Happens Next

People will watch trading activity. If more people start trading again, revenue could improve. People will also watch the next earnings report. Earnings will show if the slow time is ending. Morgan Stanley will watch the same things. Its $120 target is a guess, not a promise.

Final Thoughts

This is a cautious note, not a disaster story. Coinbase had a soft quarter. Morgan Stanley now expects a slower recovery. The next few months will show if that view is right. For more on Coinbase’s last quarter, see our earlier post on Coinbase’s $719 million profit.

Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

Sources: CNBC, “Coinbase stock downgraded by Morgan Stanley to underweight” (November 2, 2026), https://www.cnbc.com/2026/11/02/coinbase-stock-morgan-stanley-downgrade.html ; CoinDesk, “Morgan Stanley downgrades Coinbase (COIN), slashes price target 53% on weak earnings outlook” (November 2, 2026), https://www.coindesk.com/markets/2026/11/02/morgan-stanley-downgrades-coinbase-slashes-price-target-53-on-weak-earnings-outlook

November 2, 2026
Apple and Palantir Report Monday in a Huge Week for Stocks, Elections and Jobs
After a brutal week for tech stocks, the next five days could decide whether the sell-off continues or starts to calm down. Apple and Palantir report earnings on Monday, Americans vote in midterm elections on Tuesday, and the October jobs report arrives on Friday. In between, more than 100 big companies report results.

Here is what to watch, day by day, in plain terms.

What Happened Last Week

On Friday, October 30, 2026, the Nasdaq fell 2.86% to 25,437.00, its worst day since June. The S&P 500 fell 1.82% to 7,580.07 and the Dow dropped 1.09% to 51,770.31. For the full week, the S&P 500 lost 0.58%, the Nasdaq fell 2% and the Dow gave up 0.85%.

The main trigger was earnings: Amazon and Intel disappointed investors, Alphabet had already fallen sharply, and worries about how much tech companies are spending on AI spread across the whole sector. The semiconductor ETF SOXX dropped 9.1% on Friday alone.

CNBC host Jim Cramer summed up the mood on Friday: “After a brutal week for tech, don’t assume the worst is behind us.” He pointed to the election, uncertainty overseas, the jobs report and another wave of earnings as reasons to stay careful.

Monday, November 2: Apple and Palantir

Apple reports after the market closes on Monday, the biggest name of the week. Analysts expect earnings of about $1.98 per share on revenue of about $113.3 billion, up roughly 11% from a year ago. iPhone revenue alone is expected to be around $56.5 billion, about half of total sales. Apple shares recently hit an all-time high, helped by enthusiasm for its latest products, and the stock trades at almost 40 times earnings, so there is very little room for disappointment.

Palantir also reports Monday after the close. Analysts expect earnings of about $0.41 per share on revenue of about $2.18 billion, up more than 80% from a year ago. Cramer said he expects encouraging results, citing strong customer feedback about Palantir’s AI software. Other companies reporting Monday include Marriott, Vertex and ON Semiconductor.

Tuesday, November 3: Elections and AMD

Americans vote in midterm elections, with 35 Senate seats on the ballot, and AMD reports earnings after the close. AMD is expected to report revenue of about $13.1 billion and earnings of about $1.94 per share, up sharply from a year ago. As a chipmaker selling into the AI boom, its results will be read as a signal for the whole semiconductor sector, especially after Intel’s weak forecast rattled chip stocks last week. Other Tuesday names include Arista, Block, Booking Holdings, Shopify and Pfizer, plus a job openings report.

Wednesday to Friday: A Packed Finish

Wednesday, November 4 is the busiest earnings day, with Qualcomm, Uber, McDonald’s, Datadog, Arm, AppLovin and DoorDash among the names reporting, plus private payrolls and services data. Thursday, November 5 brings Atlassian, Cloudflare, Airbnb, ConocoPhillips and Cigna, plus weekly jobless claims and a speech from Cleveland Fed President Beth Hammack.

Friday, November 6 is the finale: the October jobs report from the Bureau of Labor Statistics at 8:30 a.m. Eastern, shaping expectations for the Federal Reserve’s December decision on interest rates. Moderna and Humana also report Friday. Context from CNBC’s weekly outlook: S&P 500 companies are beating earnings expectations by only 1.4% on average this season, well below the five-year average beat of 7.5%.

Why It Matters

There are three kinds of risk in five days — earnings risk (Apple, Palantir and AMD have to prove AI spending is paying off), political risk (midterm results could change what policies are possible in Washington), and economic risk (the jobs report could move interest-rate expectations, affecting everything from mortgages to stock valuations). The practical point is simple: expect big moves in either direction and do not read too much into any single day.

What Happens Next

If Apple and Palantir both beat expectations and the jobs report comes in steady, the tech sell-off could start to ease. If Apple disappoints, or jobs data surprises in either direction, volatility is likely to continue. By Friday evening, much more will be known about whether the biggest tech companies can still grow into their high valuations, whether voters changed the political picture, and whether the US job market is still holding up.

Final Thoughts

Weeks like this are why investing feels stressful. Focus on actual numbers — revenue, earnings and jobs — rather than noise. By Friday, those numbers will tell a clearer story than any single prediction today.

Key figures:
- Apple (Monday): expected EPS about $1.98, revenue about $113.3 billion
- Palantir (Monday): expected EPS about $0.41, revenue about $2.18 billion
- AMD (Tuesday): expected EPS about $1.94, revenue about $13.1 billion
- Friday, October 30: Nasdaq -2.86%, S&P 500 -1.82%, Dow -1.09%
- Friday jobs report: October employment data, 8:30 a.m. Eastern, November 6
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

Sources: CNBC week-ahead outlook as reported by TradingView News (November 1, 2026) and FXEmpire; company earnings expectations via Fiscal.ai data as reported by TradingView.
November 1, 2026
Jim Cramer Says Look Beyond Tech: 4 Consumer Staples Stocks He Likes After October’s Rotation
October was a rough month for technology stocks and a good month for the companies that sell everyday products. CNBC’s Jim Cramer told investors on Friday that this rotation is worth paying attention to — and he named four consumer staples stocks he finds attractive beyond the tech trade.

Consumer staples are the products people buy no matter what the economy is doing: tissues, diapers, soap, beer, and soft drinks. When investors get nervous about high-priced growth stocks, they often move money into these steadier businesses.

What Happened

Cramer said investors looking beyond the struggling artificial intelligence trade should consider consumer staples. The Nasdaq-100, which tracks the biggest technology stocks, ended October down almost 7%. The consumer staples index, by contrast, surged 11.4% in October, making it the second-best performing sector behind energy. The S&P 500 Equal Weight index, which treats every company in the S&P 500 the same rather than giving bigger companies more weight, gained roughly 5% for the month.

Cramer highlighted four companies: Kimberly-Clark, Procter & Gamble, Constellation Brands, and Coca-Cola. These are his opinions as a television commentator, not guarantees about future performance, and other investors may disagree.

Why It Happened

The rotation has a simple logic. Technology stocks had risen fast on excitement about AI spending, and their valuations left little room for disappointment. When big tech companies reported heavy AI spending and, in some cases, weaker-than-expected results, investors sold tech and bought more defensive stocks.

Consumer staples companies, by contrast, sell products with steady demand. People still buy tissues and toothpaste in a slowdown. That steadiness, plus dividends — regular cash payments to shareholders — makes these stocks attractive when the market feels risky.

The four picks

Kimberly-Clark, the maker of Kleenex tissues and Huggies diapers, gained nearly 11% in October. Cramer sees upside from its pending merger with Kenvue, which owns brands including Tylenol and Band-Aid. He expects the deal to create efficiencies and a stronger consumer products company. The stock trades at less than 15 times earnings and offers a dividend yield of 4.7%. It is also one of the newest holdings in Cramer’s Charitable Trust portfolio.

Procter & Gamble rallied 11% in October after better-than-expected quarterly results last week. Cramer said the company remains an attractive defensive holding, and he expressed confidence in new chief executive Shailesh Jejurikar. Note that Cramer’s own Investing Club exited its longtime Procter & Gamble position in July, so his current view is about the stock’s defensive appeal, not a claim that the club still owns it.

Constellation Brands, the maker of Modelo and Pacifico beers, surged 20% in October. Cramer pointed to signs of a turnaround: its core beer business is gaining market share, and its smaller wine and spirits division reported 15% shipment growth last quarter. The stock trades at roughly 11 times earnings and yields more than 3%.

Coca-Cola gained 9% in October after a strong quarterly report driven by higher sales volume rather than price increases. Cramer said it is the soda maker he favours among the major names.

Key figures
- Consumer staples index in October: up 11.4%
- Nasdaq-100 in October: down almost 7%
- S&P 500 Equal Weight in October: up roughly 5%
- Kimberly-Clark in October: up nearly 11%; under 15 times earnings; 4.7% dividend yield
- Procter & Gamble in October: up 11%
- Constellation Brands in October: up 20%; roughly 11 times earnings; dividend yield above 3%
- Coca-Cola in October: up 9%
Why It Matters

This story is less about four individual stocks and more about what investors do when a market leader stumbles. Money does not always leave the stock market entirely. Often it moves from one kind of stock to another — from fast-growing, expensive companies to slower, cheaper, dividend-paying ones.

That rotation can also be a warning sign. When defensive stocks lead the market, it often means investors are worried about growth, valuations, or the economy, even if they are not selling everything. It does not mean a recession is coming, but it does mean confidence in the hottest trade has cooled.

For ordinary investors, the lesson is about balance. A portfolio that holds only the fastest-growing stocks can fall hard when sentiment changes, as October showed. A portfolio that holds only defensive stocks may miss out when growth returns. Cramer’s argument is that staples deserve a place in that balance right now — not that they replace everything else.

What Happens Next

Watch whether the rotation continues into November. Apple reports earnings on Monday, November 2, and the monthly jobs report arrives later in the week. Strong results from big tech could pull money back into technology. Weak results could keep defensive stocks in favour.

Also watch Kimberly-Clark itself: it reports earnings in the coming week, and its planned merger with Kenvue remains a key part of Cramer’s case for the stock.

Final Thoughts

Cramer’s picks are opinions, and opinions from television commentators should never replace your own research. But the numbers behind his argument are real: staples rose 11.4% in a month when the Nasdaq-100 fell almost 7%. That gap is a useful reminder that markets move in cycles, and the stocks leading one month are not always the ones leading the next.

Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

Sources: CNBC (via Binance News summary of CNBC’s report), https://www.binance.com/en/square/post/10-30-2026-jim-cramer-likes-four-consumer-staples-stocks-beyond-tech-383016737198548 ; TradersUnion report on CNBC’s coverage, https://tradersunion.com/news/stocks/show/4043338-consumer-staples-stocks-investor-rotation/

Related reading: Coca-Cola’s quarterly report
October 31, 2026
Berkshire Hathaway Ends October at Record Highs as Investors Flee Tech Stocks
While tech stocks had their worst month in more than a year, Berkshire Hathaway quietly finished October at record highs. The company run by Greg Abel, who took over as chief executive after Warren Buffett, gained 8.9% in October — while the S&P 500 fell 0.9% and the Nasdaq dropped 5.3%.

That gap tells the story of October in one line: money moved out of fast-growing, high-spending tech companies and into steadier, cash-rich businesses.

What Happened

Berkshire’s Class A shares closed Monday at a record $821,931. They ended the week at $815,600, up 0.3% for the week. During Friday’s trading they briefly reached $822,929, just below the intraday record of $824,765 set the previous Thursday.

The more widely held Class B shares also set records. They closed Monday at $548.56, a record close, and reached a new intraday high of $550.47 on Friday, just above the previous session’s $549.96.

For the month as a whole, Berkshire rose 8.9%. That may not sound dramatic, but in a month when the Nasdaq fell 5.3%, it was one of the best performances among large companies.

Why It Happened

Investors rotated, which is a simple idea: they sold one kind of stock and bought another. In October, they sold AI-heavy tech stocks because they worried about how much those companies are spending on data centres and chips, and whether the spending will pay off soon enough.

Berkshire was on the receiving end of that rotation. It is a conglomerate — a company that owns many different businesses, including insurance, railroads, energy and manufacturing — plus a huge stock portfolio. It also holds an enormous pile of cash. When markets get nervous, that mix looks safer than a company betting hundreds of billions on one trend.

Berkshire’s own portfolio moves also caught attention. The company sold $69 million of DaVita shares on Tuesday, leaving it with 28.3 million shares worth $5.3 billion. That sale was needed to keep its stake at or below 45% as DaVita buys back its own shares.

At the same time, the value of Berkshire’s Alphabet stake fell. It had reached a third-quarter high of $40 billion in early August, but dropped to $29.6 billion by Friday after Alphabet shares plunged nearly 13%. That made Coca-Cola, worth $37.6 billion in Berkshire’s portfolio, its third-largest holding again.

Why It Matters

Berkshire’s record matters for two reasons. First, it shows confidence in the company after its leadership change. Buffett announced in May 2025 that Abel would succeed him, and the stock fell sharply afterwards. It has now recovered all of that ground and more, which suggests investors are comfortable with Abel in charge.

Second, it shows how quickly market leadership can change. For much of the past few years, a handful of tech giants drove most of the market’s gains. In October, the leaders were different: steady earners, insurers, energy companies and Berkshire itself. That does not mean tech is finished — these rotations happen often — but it is a reminder that no single trade works forever.

What Happens Next

Berkshire reports third-quarter results on November 7, according to market reports. That report will show how its operating businesses performed and whether it bought back more of its own stock, which it resumed doing in 2026 after buying back nothing in 2025.

Investors will also watch whether the rotation lasts. If tech stocks stabilise and their AI spending starts to show clearer returns, money could flow back. If worries about spending continue, steadier stocks like Berkshire could keep attracting buyers.

Final Thoughts

Berkshire’s October is a useful lesson for ordinary investors. You do not have to own the hottest stock of the moment to do well. Sometimes, owning a diversified business that earns steady cash, holds plenty of reserves and does not bet everything on one idea is exactly what works when the market mood changes. The trick, as always, is that nobody rings a bell when the mood is about to change back.

Key figures:
- Berkshire Class A: record close $821,931 on Monday; week-end close $815,600, up 0.3% for the week
- Berkshire Class A intraday record: $824,765 (previous Thursday)
- Berkshire Class B: record close $548.56 on Monday; new intraday high $550.47 on Friday
- October performance: Berkshire +8.9%, S&P 500 -0.9%, Nasdaq -5.3%
- DaVita sale: $69 million on Tuesday; 28.3 million shares left, worth $5.3 billion, stake kept at or below 45%
- Alphabet stake: $40 billion at its third-quarter high in early August, down to $29.6 billion by Friday
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

Sources: CNBC’s Warren Buffett Watch newsletter on Berkshire’s October records (October 31, 2026, summarised at https://biztoc.com/x/7c147d1a09b6c183); TradersUnion report on Berkshire’s October records (https://tradersunion.com/news/stocks/show/4046324-berkshire-hathaway-october-records/)

Related: Coca-Cola Raises Its Outlook Again as Global Sales Grow, but US Demand Stays Flat
October 31, 2026
ServiceNow Shares Plunge 27% to Worst Day Ever as AI Disruption Fears Hit Software

Introduction

ServiceNow shares fell 27% on Thursday, October 29, their worst single day ever. The enterprise software company reported results that were mostly solid, but investors focused on one disappointment, and the stock paid the price.

What Happened

ServiceNow reported third-quarter revenue of $4.11 billion, up more than 20% from a year earlier and slightly above the roughly $4.10 billion analysts expected. But adjusted earnings came in at $1.00 per share, below the $1.02 forecast.

The bigger problem was the outlook. ServiceNow forecast growth of 18.5% in its current remaining performance obligations, a measure of contracted revenue for the coming months, below what Wall Street expected and slower than the previous quarter. The shares closed Thursday at $109.67, down from $150.13 the day before, and fell further on Friday to close the week at $105.12, a weekly drop of about 34%.

ServiceNow was not alone. Fortinet, a cybersecurity company, fell 20% the same day after its own results. Other software stocks, including Salesforce, Snowflake and Workday, also fell during the week as the whole sector sold off.

Why It Happened

The market fear has a nickname: the “SaaSpocalypse.” The idea is that AI tools could replace the kind of business software that companies like ServiceNow sell. If AI can do the work directly, why pay for a software subscription?

ServiceNow’s own numbers argued against that fear. The company raised its full-year 2026 subscription revenue outlook to $15.78–15.79 billion, and said net new AI contract value jumped 65%. It also raised its target for AI contracts to at least $1.7 billion for the year.

But investors were not in a listening mood. ServiceNow’s finance chief pushed back on the reaction, arguing that the backlog metric is a nuanced accounting measure that does not capture all of the company’s momentum. Wall Street mostly stayed optimistic: Oppenheimer kept a Buy rating on the stock, arguing that ServiceNow’s AI momentum counters the idea that it is being disrupted, even if growth is not speeding up yet.

Why It Matters

ServiceNow’s fall shows how unforgiving this market has become for software stocks. A company can grow revenue more than 20%, raise its outlook, and still lose more than a quarter of its value in a day because one forecast number disappointed.

It also shows how the AI story cuts both ways. Companies building AI tools are being rewarded, but companies that might be replaced by AI tools are being punished, even when their own AI business is growing fast. Investors are sorting the software sector into winners and losers, and they are doing it quickly.

For context, ServiceNow’s shares have now lost 41.5% since October 28, 2025, while the S&P 500 gained 13.3% over the same period, according to Trefis analysis of closing prices.

What Happens Next

ServiceNow reports fourth-quarter results in January 2027. Between now and then, investors will watch whether its AI contracts turn into real revenue growth, and whether the backlog growth rate steadies or keeps slowing.

The wider software sector faces the same test. If AI spending keeps rising but software earnings keep disappointing, the sell-off could continue. If companies show that AI is adding to their business rather than replacing it, the sector could recover.

Final Thoughts

ServiceNow’s story is a useful warning for investors. A single number in a report can matter more than the whole picture, especially when the market is already nervous. The company’s AI business is growing, its revenue outlook went up, and analysts still mostly like the stock. None of that stopped a 27% fall. In a market like this, expectations are everything, and meeting them is not always enough.

Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

Sources: CNBC coverage “ServiceNow shares plunge 27% to worst day ever after earnings revive AI disruption fears”: https://www.cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html; Trefis analysis (https://www.trefis.com/stock/now/articles/621573/what-is-behind-the-move-in-servicenow-stock/2026-10-30) and Motley Fool (https://www.fool.com/investing/2026/10/29/servicenow-stock-just-plunged-more-than-20-in-a-single-day-here-s-what-it-did-after-its-other-biggest-drops/).

October 31, 2026
Nasdaq Ends October With Its Worst Month Since March 2025 as Tech Sell-Off Deepens
Introduction

October ended badly for tech stocks. On Friday, October 30, the Nasdaq Composite fell 2.9% to 25,437, the S&P 500 dropped 1.8% to 7,580, and the Dow Jones fell 1.1% to 51,770. For the full month, the Nasdaq lost more than 5%, its worst month since March 2025.

What Happened

The day’s biggest loser was Intel. Its shares plunged 28.6% to $65.76, the worst single day for the stock since the 1970s, according to CNBC reporting. The fall came after Intel gave a weak forecast for the fourth quarter, with revenue of $15 billion to $16 billion, below the roughly $17.1 billion Wall Street expected.

The pain spread across the chip sector. Qualcomm fell 11.1%, Nvidia dropped 4.2%, AMD lost about 11%, and SanDisk fell 13.5%. The Nasdaq 100, which tracks the largest tech stocks, fell 3.5%.

Amazon also slipped 1.4% after its own disappointing results the night before. Alphabet, which had already fallen 12.6% on Thursday in its worst day on record, dropped another 1.4% on Friday.

Not everything fell. Six of the eleven sectors in the S&P 500 actually rose. Energy gained 1.9% and consumer staples rose 1.4%, as investors moved money into safer, steadier businesses. Exxon Mobil and Chevron both briefly hit record share prices after strong earnings helped by refining profits.

Why It Happened

The simple story is this: investors are no longer willing to pay any price for AI spending. For months, big tech companies have been pouring hundreds of billions of dollars into data centres and chips. Now investors want to see the money coming back.

This week gave them reasons to doubt. Alphabet reported negative free cash flow. Amazon kept its 2026 spending plan at about $220 billion while reporting negative free cash flow of $42.4 billion over the past twelve months. Intel’s weak outlook suggested that even chipmakers are feeling pressure from a soft PC market and rising memory prices.

When a company that has already risen about 150% this year, as Intel had, disappoints on its outlook, the fall can be brutal.

Why It Matters

A few numbers put the week in context:
- The Nasdaq is now down 7.8% from its all-time closing high on October 6.
- For the week, the Nasdaq finished down 2%, the S&P 500 down 0.6%, and the Dow down 0.9%.
- For October, the Dow still gained 1.5%, but the S&P 500 lost 1.2%.
- Technology stocks lost more than $1 trillion in market value during Friday’s sell-off alone, according to market reports.
The split inside the market matters too. When energy, staples and utilities rise while tech falls, it tells you investors are not panicking about the whole economy. They are repricing one specific bet: the AI trade.

What Happens Next

All eyes now turn to next week. Apple reports earnings, the October jobs report arrives, and 138 S&P 500 companies are scheduled to report results. Investors will also be watching the US midterm elections on Tuesday.

If upcoming earnings show that AI spending is starting to pay off, tech could steady itself. If more companies disappoint, the sell-off could continue. Either way, the days when any AI announcement pushed a stock higher appear to be over, at least for now.

Final Thoughts

October was a reminder of a basic investing lesson: price matters. Great technology does not automatically mean a great stock at any price. When expectations get too high, even a decent quarter is not enough. Investors are now asking a harder question of every tech company: not “are you spending on AI?” but “when will that spending make money?”

Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

Sources: CNBC market coverage of the October 30 sell-off: https://www.cnbc.com/2026/10/30/amazon-intel-earnings-big-tech-ai-spending-concerns.html; market-wrap reporting of October 30 closing prices: The Edge (https://edgeconsultancykw.com/us-market-wrap-30-october-2026/) and Market Briefer (https://marketbriefer.com/the-global-close-october-30-2026-intels-worst-day-in-52-years-caps-the-ai-rout/).
October 31, 2026
Nasdaq Falls 3% as Tech Sell-Off Deepens — Worst Day Since June
Tech stocks took a hard hit on Friday, October 30. The Nasdaq composite fell 3% during the day, putting Wall Street on track for its worst day since June. The sell-off was led by big technology names, and it came right after a rough week for the same stocks.

The numbers below are from trading during the day, not the final closing numbers. Markets were still open when these figures were reported, so the final results may look a little different.

What Happened

The Nasdaq composite dropped 3% as of early afternoon Eastern time. The S&P 500 fell 1.8%, and the Dow Jones Industrial Average dropped 496 points, or 0.9%.

The Nasdaq 100, which tracks the 100 largest non-financial companies on the Nasdaq, also fell about 3%. Reuters reported it was on course to lose just over $1 trillion in market value on the day.

Not every stock fell. Defensive stocks — the kind of companies people turn to when they want safety — actually rose. Walmart, Coca-Cola, and Procter & Gamble all moved higher while chipmakers dropped.

Why It Happened

Two earnings reports from Thursday night set the tone: Intel and Amazon.

Intel fell about 29% after it gave a weak forecast for the fourth quarter. The company said the slowdown in personal computer sales should last at least through the first half of next year. It also pointed to manufacturing problems, a memory chip shortage, and heavy spending to expand production. Reuters said the stock was set for its biggest one-day loss on record.

Amazon fell about 2% during the day, after dropping as much as 10% in after-hours trading on Thursday. The company reported quarterly capital spending of $77.3 billion, much higher than the $58.7 billion analysts expected. That spending is mostly going toward building artificial intelligence infrastructure — data centers, chips, and computing power.

Other chip stocks fell too. Nvidia dropped almost 4%, and AMD lost more than 9%.

This came one day after Google’s parent company Alphabet had its worst day ever on Thursday, falling 12.6%. Alphabet slipped about 1% more on Friday. Earlier this week, we covered that drop in detail: Why Google Stock Crashed 12.6%: What Investors Need to Know.

Key Figures
- Nasdaq composite: down 3% during Friday trading
- S&P 500: down 1.8%, on track to erase its gain for October
- Dow Jones: down 496 points, or 0.9%
- Intel: down about 29% after a weak fourth-quarter forecast
- Amazon: down about 2%, after capital spending of $77.3 billion beat expectations of $58.7 billion
- Nvidia: down almost 4%; AMD: down more than 9%
- Nasdaq 100: on course to lose just over $1 trillion in market value on the day
Why It Matters

The bigger worry here is simple: companies are spending huge amounts of money on AI, and investors are starting to ask when that spending will pay off.

Think of it like this. Imagine a restaurant owner borrows a lot of money to build a second location. If customers start coming in quickly, the bet pays off. But if the new location sits half-empty while the loan payments pile up, investors get nervous. That is roughly what is happening with AI right now. Tech giants are pouring tens of billions into data centers and chips, and the market wants proof that the returns will come soon enough.

October has already been a rough month for tech. Through Thursday’s close, the Nasdaq 100 was down 3.31% for the month, on track for its first monthly decline in three months, even though it is still up more than 16% for the year.

At the same time, the S&P 500 was on track to erase its entire gain for October, even though it set an all-time high earlier in the month. That shows how fast sentiment can change.

What Happens Next

A few things to watch. First, the final closing numbers for Friday — the early-afternoon figures above will be updated once trading ends. Second, more big tech earnings are still to come, including Apple and Meta, which could either calm the market or add to the selling. Third, investors will keep a close eye on whether companies start talking about slowing down their AI spending, or whether they double down.

It is also worth remembering that a 3% drop, while sharp, does not erase the year’s gains. The Nasdaq 100 is still well up for 2026. Big down days happen, even in strong years.

Final Thoughts

Friday’s sell-off is a reminder that even the strongest market trend can reverse quickly when expectations get too high. Investors loved the AI story all year, but now they want to see the profits behind the spending. Intel’s weak forecast and Amazon’s huge spending bill gave them a reason to step back.

For everyday investors, the lesson is not to panic over one bad day. It is to check whether the companies you own are actually making money from their big bets — or just spending more and hoping.

Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

Sources: CNBC — Stock market today live updates, Associated Press via Barchart — tech sell-off drags Nasdaq down 3%, Reuters coverage of the Nasdaq 100’s $1 trillion market value drop
October 30, 2026