Technology stocks retreat after Nasdaq falls 1.4% amid earnings pressure
Key Facts
U.S. stocks fell on October 29, with the Nasdaq down 1.4% and both the S&P 500 and Dow Jones declining 0.3%, according to the Associated Press. The indexes fell despite gains in most stocks, as moves in technology shares weighed on the index most closely tied to the sector. Alphabet Class A shares fell 12.6%, marking their worst day since they began trading more than 20 years ago, the agency reported. The report linked the drop to investor concerns about the company's spending on artificial intelligence. Intel shares also fell in after-hours trading, while corporate results were a major focus of market moves.
Intel shares fell 18% in after-hours trading following its earnings report, according to a Reuters report published by Fidelity. The move came despite the company reporting revenue of 16.5 billion dollars in the third quarter of 2026, up 21% year over year. Adjusted earnings per share, which exclude generally accepted accounting principles, were 0.52 dollars, according to Intel's filing with the U.S. Securities and Exchange Commission. The report pairs revenue growth with a sharp negative after-hours reaction in the stock, making the company's results and its market outlook a focus for investors. Intel shares closed at 92.07 dollars on October 29, according to EL7 data.
Explaining the company's outlook, Intel CFO David Zinsner said the personal computer market slowdown could continue through the first half of the following year. That forecast puts the PC market among the factors the company is monitoring in the coming period, alongside third-quarter revenue growth. The statement did not quantify the slowdown, but indicated that it was expected to extend through the first half of the following year. The message stood out alongside the quarterly results as the company's shares fell after the close. The stock had closed at 92.07 dollars on October 29, according to EL7 data.
Microsoft, by contrast, reported quarterly revenue of 92.3 billion dollars for the quarter ended September 30, 2026, up 19% year over year. Microsoft Cloud revenue was 63.9 billion dollars, up 30%, according to the company's statement. The figures show cloud business growing faster than overall revenue in the same period. Microsoft shares closed at 530.14 dollars on October 29, according to EL7 data. The two companies' results provide contrasting context for technology stocks in a session when the Nasdaq fell 1.4%, while the broader index and the Dow Jones each declined 0.3%.