The Nasdaq Composite experienced significant declines, dropping 1.38% initially due to a 12.64% slump in Alphabet shares. This downward trend intensified as Intel and Amazon shares plunged following disappointing earnings reports and weak outlooks, causing the index to open 2.44% lower the next day. Despite the overall index decline, market breadth remained strong with a majority of S&P 500 stocks advancing. Intel's performance specifically highlighted growing concerns over the rising costs of artificial intelligence infrastructure.
The decline followed a 23% drop in after-hours trading, as the company forecast continued pressure on PCs and lingering effects from a factory disruption.
Read the full storyThe stock’s worst decline in more than 20 years coincided with record cloud growth, while investment losses deepened the hit to earnings per share.