AI Search: Tech rout drags US equities lower to close out October
Top story
US equities ended October on a weak note as a broad technology selloff deepened. Chipmakers, software names, and AI-linked stocks slid together as doubts grew that massive AI infrastructure spending will translate into near-term profits. The weakness was widespread across the tech complex: chip names including Intel, AMD, Marvell, and Qualcomm all fell in the rout, while server maker Super Micro and software names like Okta, GitLab, MongoDB, and Cloudflare also dropped sharply. Sandisk fell despite an earnings beat, with investors weighing valuation. Bitcoin-linked and crypto-exposed names such as MicroStrategy and Coinbase slid as well. A few pockets of relief stood out: Coca-Cola rose after beating quarterly expectations, and Home Depot held up quietly amid the broader weakness.
Market reaction
Major US equity benchmarks closed lower, with the technology-heavy Nasdaq complex bearing the brunt of the selling. The move was sharp in AI-linked and semiconductor names, and modest-to-sharp across the broader market. Money rotated into Treasuries, lifting bond prices. The US dollar was not a focal point of the session. Selective consumer staples names found bids, offering a contrast to the tech-heavy selling.
Policy / macro
Attention now turns to a heavy calendar: the US midterm elections, ongoing corporate earnings, and upcoming jobs data. An AI-wary market is bracing for fresh catalysts after the October selloff. Separately, headlines on trade and geopolitics circulated — including a reported US missile sale to Ukraine and developments involving Iran — though these did not appear to be the primary driver of the equity move.
Affected sectors and tickers
- Technology (XLK, QQQ, SOXX): Sharp declines across chips and software. NVDA, AMD, INTC, QCOM, MRVL all fell in the chip rout; SMCI slid with server peers; software names OKTA, GTLB, MDB, NET, TWLO dropped, with Twilio falling despite topping estimates on slowing outlook commentary.
- AI-adjacent and speculative tech: OKLO hit a fresh 52-week low; RKLB slid; PLTR faced contract scrutiny; HOOD and ABNB moved down technically.
- Consumer staples (XLP, KO): Coca-Cola rose on its Q3 beat, a rare bright spot.
- Consumer retail (TGT, XLY): Target showed a technical move up as holiday retail focus intensifies.
- Treasuries (TLT): Bonds lifted as money sought safety.
- Industrials and other movers: GE saw technical selling; PWR and C posted significant price moves; GEV's deal news appeared priced in.
What this news leaves open
- Whether AI infrastructure spending will produce near-term profits remains the central unresolved question behind the selloff.
- How the market digests the midterm elections, remaining earnings, and jobs data is unknown.
- Whether the rotation out of tech into defensives and Treasuries persists or reverses.
- Whether beaten-down names like Sandisk, which beat earnings yet fell on valuation, signal a broader shift in how the market rewards results.
Sources
Ezbrisk weighs each event against the market reaction and publishes a verdict with an overreaction reading. How the methodology works