Why is Nasdaq trending today? AI sell-off explained

Published 31 October 2026 at 5:15 am · 10 sources · 200+ searches today

Nasdaq is trending in Australia because U.S. tech shares sold off sharply on Friday, 30 October 2026. The Nasdaq-100 was down about 3% in early trading, as investors worried that huge artificial-intelligence spending at Big Tech companies may not generate profits fast enough to justify current valuations. Australians are watching because overnight Wall Street moves can affect local technology and growth shares.

Key facts

30 Oct 2026: Nasdaq-100 down about 3% in early trading
Intel fell roughly 30% after quarterly results missed expectations
Amazon fell about 3%–6% as AI spending worries grew
Gartner forecasts global AI investment at US$2.7 trillion in 2026
Nasdaq-100 had already fallen 1.4% on 29 Oct 2026

What happened on 30 October

On Friday, 30 October 2026, U.S. technology shares fell sharply, with the Nasdaq-100 down about 3% in early trading. The move put the index on course for its worst single-day decline since mid-June.

The sell-off was led by concern that Big Tech’s large artificial-intelligence investments may not be delivering profits quickly enough to support current share prices.

Why investors are worried

The main concern is that companies are spending heavily on AI infrastructure before earnings have caught up. That includes data centres, chips and AI models, all of which are expensive to build and finance.

Amazon said its 2026 capital expenditure could reach about US$220 billion, with most of it directed toward AWS and AI infrastructure, and spending could rise further in 2027.

The wider market context

Investors are also focusing on how the AI boom is being financed. There is growing concern about sector reliance on debt and the cost of funding the infrastructure needed for AI growth.

According to Gartner, global AI investment is forecast at US$2.7 trillion in 2026 and US$3.6 trillion in 2027. That scale of spending is part of why markets are questioning how quickly returns will arrive.

What to watch next

Watch whether more large U.S. technology companies report similar pressure from higher AI spending and slower revenue growth. Further results could either calm markets or extend the sell-off.

Also watch whether the Nasdaq-100 stabilises after the sharp 30 October move, and whether investors continue to punish companies that are increasing capex without near-term profit growth.

Frequently asked

Why is Nasdaq trending in Australia today?

It is trending because U.S. tech stocks fell sharply on 30 October 2026, with the Nasdaq-100 down about 3% in early trading. The drop was linked to fears that heavy AI spending may not pay off quickly enough.

How much did the Nasdaq fall on 30 October 2026?

The Nasdaq-100 was down about 3% in early trading on Friday, 30 October 2026. The move put it on track for its worst single-day decline since mid-June.

Which stocks were hit the hardest?

Intel shares plunged roughly 30% after quarterly results missed expectations. Amazon fell about 3% to 6% after earnings raised concerns about AI spending and slower core retail growth.

Why are investors worried about AI spending?

Investors are questioning whether the huge costs of data centres, chips and AI models will produce profits fast enough. Amazon said its 2026 capex could reach about US$220 billion, and Gartner forecasts global AI investment at US$2.7 trillion in 2026.

Sources

Researched automatically from live news and written by Simpledot's AI; facts are limited to what the sources above report as of the published time. Spot an error? Tell us.