Nasdaq falls 3.1% as tech selloff widens amid AI concerns
Key Facts
The Nasdaq Composite fell 3.1% by 1:20 p.m. ET on October 30, 2026, in a session that saw the technology stock selloff widen. The S&P 500 declined 1.9%, while the Dow Jones Industrial Average lost 511 points, or 1%, according to The Associated Press. The indexes came under pressure amid investor concerns about rising valuations at technology companies tied to artificial intelligence. The agency said the selloff intensified on Friday amid concerns that Wall Street's enthusiasm for AI had driven prices higher than warranted. The moves put the Nasdaq's decline in the context of broader weakness in technology stocks, but do not establish that this factor caused moves in any particular drone-sector stock.
The Associated Press linked the shift in trading to investors moving from optimism about AI's potential to demanding that companies show tangible returns. The agency quoted one market participant as saying, "We're moving from the hopes-and-dreams phase of AI trading to: Show us the results." The comment reflects a growing focus on companies' ability to turn AI-related spending and expectations into results, as technology shares declined. The Nasdaq had the steepest decline of the three indexes cited in the agency's data by midday on October 30. The S&P 500 and Dow Jones posted smaller losses than the Nasdaq at the same time.
Friday's session followed declines in the indexes during trading on Thursday, October 29: the S&P 500 fell 0.3%, the Nasdaq dropped 1.4%, and the Dow Jones declined 0.3%, according to The Associated Press. The Nasdaq's drop on October 30 was larger than its loss in the previous session, while the S&P 500's loss widened from Thursday's decline. The two-session sequence points to continued pressure on U.S. stocks, with a prominent share of it concentrated in technology stocks. This comparison does not show that those pressures alone explain the performance of the drone companies mentioned in the first draft.
Among the individual moves reported by The Associated Press in the October 30 session, Intel shares fell 30%. The decline came after the company forecast fourth-quarter earnings below analysts' estimates, according to the agency. The stock's performance offers an example of the technology sector's sensitivity to earnings expectations, alongside the broader selloff. The agency also reported that Alphabet Class A shares fell 12.6% on October 29, their worst daily performance since they began trading more than 20 years ago. It linked the move to the company reporting weaker-than-expected growth over the summer, while market index losses extended into the following session.
EL7 data available for shares of Unusual Machines and Red Cat show closing prices of $17.28 and $5.05, respectively, on October 29, 2026. These are closing prices from the previous session and do not represent prices or percentage changes for October 30. The declines attributed to Unusual Machines, Red Cat, Ondas and AeroVironment in the initial account could not be verified; the available data therefore do not establish that the four companies joined the selloff at the rates reported there. Nor does this material support an explanation linking the movement of any of these stocks to AI concerns, although The Associated Press linked the broader technology selloff to those concerns.
On company news, Red Cat announced on October 19 a proposed cash offer to acquire all outstanding shares of Steyr Motors for 39 euros per share. The company said completion of the offer is subject to conditions and regulatory approvals. In a separate announcement, Red Cat set November 16, 2026, after the close of U.S. markets, as the date for reporting its third-quarter results for the quarter ended September 30. The company is scheduled to hold an online meeting that day at 4:30 p.m. ET. The results date will allow investors to review the quarter's figures after the selloff session, while the announcement cited in the evidence did not include details of the expected results.