A broad selloff hit technology and other risk assets on Friday: Intel and Reddit fell 29%, while Sandisk dropped 13%. The Nasdaq composite lost 7.8% for the month, its worst since March 2025, as investors questioned hyperscalers’ rising AI spending.
The Nasdaq composite fell Friday by its most since June, as Intel and Reddit each lost 29% and Sandisk dropped 13%. The Nasdaq 100 declined 3.5%, putting it near a correction, defined in the article as a 10% drop from a recent high; the Nasdaq composite ended 7.8% below its closing high.
Microsoft, Meta Platforms, Amazon and Alphabet shares fell 1% to 2% on Friday after significant declines earlier in the week. Capital Economics said the four hyperscalers accounted for more than a third of S&P 500 constituents’ capital spending over the past 12 months, and their share seems likely to rise. Investors are concerned about the scale and financing of the spending, said Capital Economics economist John Higgins.
The selling extended beyond technology, with Treasuries rallying and financial stocks falling; Goldman Sachs declined 4% and Jefferies fell 6%. Oil rose 2%, while gold dropped 3.5% and silver fell 6%. Investors described the market decline as a pullback after a strong run-up, with some moving money into other areas.
