Nasdaq-100 futures tumble as AI spending worries hit tech stocks

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Nasdaq-100 futures tumble

Highlights

Nasdaq futures fell 2.62% amid tech losses.
Amazon slid 7%, while Intel plunged 26%.
AI spending concerns fuel the tech selloff.

December Nasdaq-100 futures dropped 2.62%, to 28,788.25, according to the latest market snapshot. Losses in major technology companies followed disappointing quarterly results and weaker business forecasts, CNBC reports. S&P 500 futures declined 1.13%, to 7,666.50, while Dow Jones futures gained 0.03%, to 52,529, highlighting the divergence between technology shares and the broader market.

Amazon and Intel earnings trigger fresh selling

Amazon shares fell nearly 7% in premarket trading after the company missed Wall Street expectations for third-quarter earnings and revenue. The retailer and cloud computing provider also reported a negative free cash flow of $42.4 billion while maintaining its 2026 capital expenditure forecast of $220 billion. The combination raised questions about how quickly substantial investments in artificial intelligence infrastructure will translate into stronger financial performance.

Intel suffered an even steeper decline, with shares plunging almost 25% after the chipmaker issued a disappointing outlook for the current quarter. The company cited slowing demand for personal computers, while revenue in its client computing and physical AI division fell 5% from a year earlier to $8.1 billion. Sandisk shares also dropped more than 8% despite better-than-expected quarterly results and an announcement of an eight-for-one forward stock split.

AI spending concerns spread across technology stocks

The latest declines followed Thursday's selloff, when Alphabet shares lost 12% after disappointing third-quarter results and negative free cash flow of $9.07 billion. The Google parent's weakness helped push the Nasdaq Composite down 1.4%, while the S&P 500 declined 0.3%. Investors have become increasingly cautious about the scale of AI infrastructure spending, particularly as companies face pressure to demonstrate that expensive investments can generate sustainable returns.

Concerns have also spread to cloud infrastructure providers carrying substantial debt. CoreWeave shares have fallen approximately 30% in October amid rising bond yields, while Nebius is heading toward a 27% monthly decline. The weakness has affected specialized technology funds, with the Roundhill Memory ETF losing 14% and the iShares A.I. Innovation and Tech Active ETF falling 10% during the month.

October losses highlight growing market divergence

Technology stocks are approaching the end of October under sustained pressure, with the Nasdaq Composite heading for a monthly decline of approximately 2.5%. By contrast, the S&P 500 is on track to gain 0.9%, while the Dow Jones is positioned for a 2.8% advance. The divergence suggests investors are becoming more selective about technology valuations and increasingly concerned about the financial returns from AI expansion.

Selling pressure has also reached Asian markets. Japan's Nikkei 225 closed 2.3% lower Friday, South Korea's Kospi declined 2.8%, and China's CSI 300 lost 1.39%. With Nasdaq-100 futures falling and Intel shares plunging, attention is turning to whether upcoming corporate earnings can restore confidence in technology companies' profitability and justify further investment in artificial intelligence infrastructure.

Earlier, we reported that gold tumbles below $4,000 as inflation and stock losses rattle investors.

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