Friday, October 30, 2026
Intel and Amazon Sink After Hours as the AI-Spending Selloff Spreads Beyond Alphabet
Key Indicators
S&P 500 (Thu close)
7,720.39
-0.30% (down)Nasdaq Composite (Thu close)
26,184.72
-1.38% (down)Dow Jones Industrial Average (Thu close)
52,342.56
-0.25% (down)10-Year Treasury yield (Thu close)
4.94%
-0.11 pts (down)Brent Crude (Thu)
$110.80
-0.8% (down)Market Recap
Thursday's close: Alphabet drags the Nasdaq down 1.4%
U.S. stocks closed lower on Thursday, October 29, ending the S&P 500's three-day winning streak. The S&P 500 fell 23.59 points, about 0.3%, to 7,720.39, the Nasdaq Composite dropped 365.13 points, about 1.4%, to 26,184.72, and the Dow Jones Industrial Average lost 132.54 points, about 0.3%, to 52,342.56. Alphabet fell about 12.6% after third-quarter results, erasing more than $500 billion in market value as investors questioned the return on its AI spending. U.S. markets are open today, Friday, October 30.
Intel falls more than 20% and Amazon about 12% at the low after hours
Both companies reported after the close on Thursday and fell sharply in extended trading, with Nasdaq futures down about 1.2% over the same window. Intel dropped as much as 22.7% from about $92.08 to $71.20 before rebounding, even though revenue rose 21% to about $16.5 billion, adjusted EPS of $0.52 beat estimates and data center and AI revenue jumped 78%. The damage came from guidance: fourth-quarter revenue of $15.0 to $16.0 billion against a consensus near $17.07 billion. Amazon fell as much as 12.4% to a low near $214.01, then recovered to about $228.62, still about 6% lower. Third-quarter EPS of $1.89 missed estimates near $1.97 and trailing free cash flow turned negative, even though AWS revenue grew 39.3% to about $46 billion. Amazon still guides 2026 capital spending to about $220 billion. These are after-hours moves, not closes.
GDP and PCE keep a December hike in play; yields retreat
Third-quarter GDP grew at a 3.4% annualized pace, above forecasts, and September PCE inflation matched expectations at 3.6% headline year over year, with core PCE up 0.3% on the month and 3.1% year over year. The 10-year Treasury yield closed at 4.94%, down from 5.05% the previous day, as the equity selloff pulled money toward bonds. Brent crude settled near $110.80 a barrel, down about 0.8%.
Concept of the Day
Free Cash Flow
Free cash flow (FCF) is the cash a company generates from operations minus the capital expenditures it needs to maintain and grow its asset base. Net income is an accounting figure that spreads big purchases over many years through depreciation, while FCF shows the actual cash left over after paying for equipment, data centers and buildings. That cash is what can be paid out as dividends, used for buybacks, spent on acquisitions or used to pay down debt. A company can report strong profits and still have negative FCF if it is spending heavily to expand. That is not automatically bad, since growth spending can create future earnings. The question investors ask is about return: will each dollar of capex eventually earn more than its cost of capital? When spending runs ahead of revenue, FCF falls and the market starts to demand evidence of payoff. Analysts watch FCF alongside capex guidance. Rising capex with accelerating revenue supports a growth story. Rising capex with decelerating growth or missed guidance raises the risk that the spending earns a poor return, which pushes valuation multiples lower.
Why it matters
This week's selloff is a free-cash-flow story. Alphabet fell about 12.6% on worries about the return on its AI spending, and Amazon dropped as much as 12.4% after hours as its trailing free cash flow turned negative and 2026 capex stayed guided near $220 billion, even with AWS up 39.3%. Intel's data center and AI revenue rose 78%, but weak fourth-quarter guidance sent it down as much as 22.7%. With the 10-year Treasury yield near 4.94%, investors have less patience for spending that has not yet produced cash.
What to Watch
Tue, Nov 3
JOLTS Job Openings (September)
Job openings show whether labor demand is cooling, which feeds into December rate expectations.
Fri, Nov 6
Employment Situation (October jobs report)
Payrolls and wages will shape whether the Fed sees room to hike in December.