Intel led the decline, with shares plummeting after the chip manufacturer issued a weak fourth-quarter revenue forecast. Management attributed the shortfall to a stubborn slump in the personal-computer market, signaling that recovery remains elusive. Meanwhile, Amazon saw its stock slide as executives reported a deceleration in advertising revenue growth, a trend that mirrors recent warnings from Alphabet.
In section Market Quotes
Tech Stocks Stumble as Earnings Reports Fuel AI Skepticism
A 4.9% drop in the SPDR Technology Sector ETF erased weeks of momentum, leaving the index 13% below October’s peak. Investors are abandoning the sector as disappointing quarterly results from industry giants Intel and Amazon transform fears of an artificial intelligence bubble into a tangible market correction.
Alphabet itself continued to retreat during the session, struggling to find a floor after suffering the largest single-session market-capitalization loss in history just one day prior. These coordinated declines suggest that the market is recalibrating its expectations for high-growth tech firms, moving away from the AI-fueled optimism that defined the third quarter.
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