Nasdaq Sinks 2.9% as Intel Plunges 29% — November 1, 2026

Top U.S. Stories

• Tech rout. The Nasdaq Composite fell 2.9% on Friday as investors worried that heavy AI spending may not pay off. The S&P 500 lost 1.8% and the Dow 1.1%. Why it matters: Big tech has carried the market for years. If investors start demanding proof of returns on AI spending, the leadership of the whole rally is in question.
• Intel’s worst day in decades. Shares fell about 29% after the chipmaker guided to $15–16 billion in revenue and 25 cents adjusted EPS, versus expectations of $17.1 billion and 43 cents. It cited a plant shutdown in Israel and soft PC demand.
• Amazon misses. Third-quarter revenue and earnings fell short, free cash flow was negative for a second straight quarter, and the company kept its $220 billion 2026 capex forecast. Alphabet had slid about 12% on Thursday. Why it matters: Back-to-back disappointments from the biggest AI spenders sharpen the debate over whether the investment boom is getting ahead of its payoff.
• Fed holds, hike risk grows. The Fed kept rates at 3.75%–4.00% on Oct. 28 in a 10–2 vote, with two officials preferring a quarter-point hike. A possible December hike is now part of the market debate. Why it matters: Higher-for-longer rates are a headwind for richly valued growth stocks and for borrowers.
• Midterms Tuesday. U.S. midterm elections are on Nov. 3, and energy traders are positioning ahead of them.

Compass Insight

Friday’s selloff was less about one bad quarter than about a changing question: not “who is spending on AI?” but “who is getting paid for it?” Intel’s weak outlook and Amazon’s cash burn landed one day after Alphabet’s slump, turning isolated disappointments into a theme. What makes this more delicate is the backdrop: oil is near $104 on Gulf shipping attacks, and the Fed leans toward raising rates, not cutting. In the short run, watch how Monday’s Asian and European trading digests the Nasdaq drop and what the midterms mean for policy. Over the medium term, the test is whether AI leaders can show revenue growth that justifies their capital spending. Elevated oil plus rising rate expectations is a combination that can squeeze both household budgets and valuations.

Markets

Friday closes: the Dow 51,770.31 (-1.1%), S&P 500 7,580.07 (-1.8%), Nasdaq 25,437.00 (-2.9%). WTI crude settled at $104.12, up about 15% in October, as attacks on tankers near the Strait of Hormuz kept risk premiums high. In Tokyo, the Nikkei 225 closed at 63,290.11, down 1,369.36 points, and the dollar was at 157.25 yen on the Oct. 30 reference rate.

Stocks in Focus

• Intel: worst day since the 1970s on weak guidance.
• Amazon: earnings miss and negative free cash flow renewed capex worries.
• Alphabet, Nvidia, Broadcom, Qualcomm: all pressured by the AI-spending debate.

Not a recommendation to buy or sell any security.

Around the World

• Poland: A Constitutional Tribunal standoff escalated Friday when government-backed judges entered the building and declared the president of the court suspended. President Nawrocki rushed home and accused the government of a power grab; PM Tusk vowed “no compromise” on the rule of law.
• Spain: The Oct. 28 train collision in Toledo province killed 69 people.
• Israel: The final count gave Netanyahu’s bloc 53 seats, the main opposition 48, and Arab-led parties 19; no bloc has the 61 needed for a majority.
• Japan: The Bank of Japan held rates at 1.25% in an 8–1 vote and said underlying inflation is roughly consistent with its 2% target.

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Auto-generated and AI-written. Not investment advice.