Nasdaq 100 Erases $1.2 Trillion in October as Stocks and Bitcoin Fall
Key Facts
The technology stock selloff widened on October 30 as concerns grew that enthusiasm for AI investment had pushed share prices to elevated levels, according to the Associated Press. The Nasdaq 100 fell 2.6% in morning trading, while Bitcoin dropped 2.4% to $76,913.77, according to a Bloomberg report published by SWI swissinfo.ch. The index had erased more than $1.2 trillion in market value during October through that day. The Nasdaq Composite was down 3.1% by 1:20 p.m. Eastern time and was heading for its worst day since June, according to the Associated Press. The decline came as investors began reassessing how sustainable the returns companies could generate from heavy AI spending might be.
The selloff coincided with data showing faster U.S. economic growth: real gross domestic product rose at an annual rate of 3.4% in the third quarter, after growing 2.2% in the second quarter, according to an estimate from the U.S. Bureau of Economic Analysis. The reading was above economists’ forecast of 3%, according to a FactSet survey cited by the Associated Press. Consumer spending increased 3.8% during the quarter, while business investment excluding housing rose 12.7%. Investment details showed a 37.4% increase in information-processing equipment and a 9.6% rise in software. The Associated Press linked the sharp increase in business investment to the AI boom, the same boom that is prompting investors to question the value of the spending and its expected return.
Core inflation remained elevated in September, with the personal consumption expenditures price index excluding food and energy rising 3.1% from the same period a year earlier and 0.3% month over month, according to the U.S. Bureau of Economic Analysis. The annual inflation reading alongside stronger-than-expected growth data came as investors watched indicators of prices and economic activity. GDP figures showed the economy grew at a faster pace in the third quarter than in the second quarter. Quarterly growth also exceeded economists’ forecasts. The bureau is scheduled to release October personal income and spending data on November 25, 2026, at 8:30 a.m. Eastern time.
Technology stocks were among the market’s biggest sources of pressure: Nvidia fell 4.8% on October 30 and was the single largest drag on the S&P 500, weighing more than Intel, according to the Associated Press. Intel fell about 30% after the company’s earnings forecast for the final quarter of the year came in below analysts’ expectations. Its chief executive said the personal-computer industry continued to face pressure. In the session, Intel was headed for its worst day since 1974, the news agency reported. The moves showed the selloff spreading from companies directly tied to the AI boom to the broader technology sector.
Losses extended to cryptocurrency stocks: Coinbase Global fell 13.4%, despite reporting quarterly results that topped analysts’ expectations, according to the Associated Press. The stock fell as Bitcoin dropped 2.4% to $76,913.77 in morning trading, according to Bloomberg via SWI swissinfo.ch. The Associated Press said a breach of the Binance platform was among factors linked to weakness in the cryptocurrency sector. Elsewhere in markets, U.S. Treasuries were heading for their best month since February 2025 as investors moved into haven assets, according to a Bloomberg report. The moves reflected declining appetite for riskier assets as the selloff in technology stocks and cryptocurrencies widened.
The previous session had shown a divergence between large stocks and smaller companies: on October 29, the Nasdaq Composite fell 1.4% to 26,184.72, while the Russell 2000 rose 1% to 2,859.22, according to the Associated Press. That came before technology losses worsened the following day, as attention remained on AI company valuations and related spending. On the economic data front, the third-quarter GDP report was the first of three estimates of growth for the quarter to be released by the U.S. Commerce Department, according to the Associated Press. October personal income and spending data, scheduled for release on November 25 at 8:30 a.m. Eastern time, remain the next economic release listed in the bureau’s data.