This roundup covers a third consecutive week of declines in the artificial intelligence trade, with financial results from companies financing the expansion adding pressure. By Friday afternoon, the Nasdaq 100 had fallen about 4% during the session to the lowest level since early August. The Nasdaq 100 was down roughly 2.5% for the week, marking a third consecutive weekly decline. The S&P 500 had lost about 2% during the session and close to 1% over the week.
Alphabet shares were down about 13% for the week, heading for the weakest weekly performance since August 2011. Alphabet reported revenue below expectations on Wednesday night. Alphabet's free cash flow turned negative, reaching an outflow of roughly $9 billion. Alphabet management indicated that capital spending will increase again in 2027. Alphabet shares dropped 13% on Thursday, the largest single-session percentage decline in the stock's history, eliminating roughly $482 billion in market value. The Communication Services Select Sector SPDR Fund was heading for an eighth consecutive daily decline, the longest losing streak since the fund began in 2018.
Amazon added pressure on Thursday night with earnings of $1.89 per share, below the $1.96 consensus estimate. Amazon said capital expenditures in 2027 will be "meaningfully more" than approximately $220 billion this year.
Intel shares plunged about 30% on Friday, the largest daily decline in Intel's trading history. Intel had recorded no comparable decline across more than 11,700 trading sessions since 1980. Intel forecast fourth-quarter revenue between $15 billion and $16 billion, below analysts' estimate of $17.07 billion. Intel said weakening PC demand means Intel does not expect positive cash flow this year. Bank of America Global Research cut Intel's rating from Buy to Neutral in a Friday report. Bank of America Global Research said PC and supply pressures more than outweigh the benefits from demand for agentic server CPUs. Intel shares were down close to 27% for the week.
The roundup also covers Federal Reserve Chair Kevin Warsh declining to commit to a December rate decision, rejecting forward guidance except in extraordinary circumstances, and saying interest rates affect almost everything directly or indirectly.
Alphabet, Amazon, and Intel Face Sharp Stock Declines in Volatile Week on Wall Street
BenzingaShare
Summary
risk-on assets saw renewed pressure as the Nasdaq 100 fell about 4% for the third straight week. Alphabet shares dropped 13%, the worst since 2011, after weak revenue and negative free cash flow. Amazon also missed estimates, while Intel plunged 30% on Friday, its worst day ever. Weak PC demand and revenue forecasts triggered the selloff. liquidity and crypto markets remained under watch as Fed Chair Kevin Warsh avoided committing to a December rate decision.
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