US tech stocks tumble as AI spending and chip shares weigh on market

· Finance · United States

US technology shares fell sharply, with the Nasdaq's slide drawing comparisons to the 2000 dot-com peak. Concerns intensified after reports that Anthropic could receive a junk credit rating after its IPO, adding to worries about the industry's borrowing spree. Intel suffered its worst trading day since the 1970s, wiping about $12 billion off the US government's stake, while AMD shares also slid. Reddit plunged 29% after weak fourth-quarter guidance and plans to test requiring users to log in to view content, its biggest one-day drop ever. Despite the selloff, the S&P 500 showed breadth, with a majority of stocks higher for October.

Why it matters：A sharp repricing of AI-linked equities and credit risk could tighten financing conditions for the technology sector and reshape investor expectations for the AI buildout.

Key points

  • Intel's stock had its worst day since the 1970s, erasing about $12 billion from the government's stake.
  • Reddit fell 29% on weak Q4 guidance and a planned login requirement.
  • Anthropic's possible junk rating added to AI borrowing concerns.

Sources (original reporting)

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