Stock market news today: Nasdaq futures fall on AI spending fears

What happened. On Thursday 29 October, Alphabet, Google's parent, lost just over $500bn in market value, the BBC reports. Its value fell from $3.97 trillion to $3.46 trillion. Reuters called it a record selloff and said the shares fell more than 12%. On Friday 30 October the pressure did not ease. At 04:04 a.m. ET, Nasdaq 100 futures were down 2.16%, S&P 500 futures down 1% and Dow futures down 0.05%.

What changed on Friday. Amazon reported a sharp cash outflow in the third quarter and signalled higher capital spending next year. Intel warned it would burn cash this year because of a weak PC market, manufacturing bottlenecks and heavy spending to expand production. Reuters says Amazon and Intel together are poised to lose about $300bn in market value if premarket losses hold. Chip stocks fell too: Nvidia 2.5%, AMD 7%, Broadcom about 4%. We cover the earnings numbers on separate pages: Alphabet https://freekonomist.com/news/googl-stock-alphabet-q3-2026-results-cloud-103-percent-2026-10-28/ , Amazon https://freekonomist.com/news/amazon-stock-q3-2026-earnings-aws-39-percent-2026-10-29/ , Intel https://freekonomist.com/news/intc-stock-intel-q3-2026-earnings-2026-10-29/ .

It is about cost, not growth. Jake Behan of Direxion told Reuters: "At this point, the market isn't just asking how fast you can grow. It's asking what you have to spend to get there." Meta reported cash burn in the September quarter last week. Microsoft was the only exception, yet it still raised $25bn in a debt sale on Thursday. Reuters adds that several companies tapped the bond market, and that debt-funded spending gets harder to justify as borrowing costs rise.

Rates in the background. The Fed held its main rate steady this week. Analysts see a pause and widely expect a hike as soon as December, Reuters reports. LSEG data show the Fed is expected to raise rates by more than 50 basis points by mid-2027 (one basis point is 0.01 percentage point). Reuters' video report also said US growth in the third quarter beat forecasts and inflation kept rising.

The week and the month. The S&P 500 and the Nasdaq are on course for weekly gains. For October, the Nasdaq is set for a drop after two monthly gains, while the S&P 500 and the Dow are headed for a rise. Communication services is heading for its worst month since April 2022.

What to take from it. This is our reading, not a forecast: the AI story is no longer only about demand. It is also about who pays, and how. Futures can turn before the open, so check live levels on our Nasdaq 100 page https://freekonomist.com/stocks/ndx/ and S&P 500 page https://freekonomist.com/stocks/spx/ , and the mood of well-known market voices at https://freekonomist.com/crowd/ .

What we don't know. Whether the futures moves hold at the US open. How Europe and Asia trade. Whether the hit to Alphabet's search ads lasts: the BBC says AI summaries in search affected ad revenue.

Confirmed facts

• On Thursday 29 October Alphabet lost just over $500bn in market value, from $3.97 trillion to $3.46 trillion. Its shares hit a six-month low.^[1]
• Per the BBC, AI summaries in Google search affected ad revenue.^[1]
• Reuters: Alphabet shares fell more than 12% on Thursday after a record selloff.^[2]
• At Thursday's US close the Dow was down about 0.25%, the S&P 500 down 0.3% and the Nasdaq down nearly 1.4% (Reuters video report).^[2]
• On Friday 30 October at 04:04 a.m. ET, Nasdaq 100 futures were down 2.16%, S&P 500 futures down 1% and Dow futures down 0.05%.^[2]
• Amazon shares were down 7.2% in premarket trading after a sharp cash outflow in the third quarter and a signal of higher capital spending next year.^[2]
• Intel shares were down 25% in premarket trading after the company warned it would burn cash this year because of a weak PC market, manufacturing bottlenecks and heavy spending to expand production.^[2]
• Amazon and Intel together are poised to lose about $300bn in market value if losses hold.^[2]
• In premarket trading Nvidia was down 2.5%, AMD 7% and Broadcom about 4%.^[2]
• Meta reported cash burn in the September quarter; Microsoft, the only exception among the big spenders, raised $25bn in a debt sale on Thursday.^[2]
• Microsoft shares fell by less than 1% on Thursday.^[1]
• The Fed held rates steady this week; analysts expect a hike as soon as December, and LSEG data show an expected rise of more than 50 basis points by mid-2027.^[2]
• The Nasdaq is set for a monthly drop in October after two monthly gains, the S&P 500 and the Dow for a rise; communication services is heading for its worst month since April 2022.^[2]

Implications

• ConfirmedNasdaq 100 futures fell more than 2% after the Alphabet, Amazon and Intel reports.
• ConfirmedInvestors are now focused on the price of the AI race: cash burn and debt at the biggest tech companies.
• Our readingRate hike expectations and Big Tech cash burn together may keep the stock market jumpy.

Still unknown

• Whether the futures moves hold at the US open on Friday.
• How European and Asian markets react.
• How long the hit to Google's search ads lasts.
• What the Fed decides on rates.

Who it affects

US, Canada, Europe, Asia, World. People who follow global stocks and AI spending

Sources

1. BBC News: Google value plunges by $500bn as AI search hits ad sales October 29, 2026 · media
2. Reuters: Nasdaq futures tumble as Amazon, Intel results deepen AI spending woes October 30, 2026 · media