US Stock Market Live Updates: Nasdaq futures tumble 2.4% as Amazon, Intel deepen AI spending concerns
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Dow Jones | Nasdaq | Stock Market Live: The Nasdaq opens at its lowest level in more than two months, falling 2.26% as Amazon's aggressive AI spending plans and Intel's cash burn warning fuel concerns over rising infrastructure costs and uncertain returns. The Dow edges higher, while the S&P 500 drops 1.16%.
US stocks come under pressure on Friday as concerns over the cost of artificial intelligence infrastructure weigh on technology shares. The Nasdaq slumps to its lowest opening level in more than two months, while the Dow manages a marginal gain.
- Nasdaq Composite plunges 2.26% to 25,592.486.
- S&P 500 declines 1.16% to 7,631.07.
- Dow Jones edges up 0.08% to 52,383.9.
- Amazon's AI spending plans and Intel's cash burn warning intensify concerns over infrastructure costs and returns.
- Nasdaq Composite plunges 2.26% to 25,592.486.
- S&P 500 declines 1.16% to 7,631.07.
- Dow Jones edges up 0.08% to 52,383.9.
1 New Update
The Nasdaq opened at its lowest level in more than two months on Friday, after Amazon's aggressive AI spending plan and Intel's cash burn warning intensified investor concerns about escalating costs of AI infrastructure buildout and the return timeline.
Read more: Nasdaq plunges 2.3% to over two-month low
Copper prices fell on Friday and were set to log their first monthly decline since June, pressured by a broader retreat in risk appetite following concerns over massive artificial intelligence spending. Benchmark three-month copper on the London Metal Exchange dropped 0.9% to $14,227 a metric ton, setting the metal up for a 1% fall in October as tech sector anxieties and rising oil prices prompted investors to move toward safer assets like bonds.
Despite the monthly decline, near-term supply tightness continues to support prices, with elevated cash premiums and China's Yangshan copper premium remaining near a 13-year high. Supply pressures were further underscored by Rio Tinto pausing underground operations at its Oyu Tolgoi mine in Mongolia due to seismic activity and border transit delays, while tin also slipped to a six-month low on similar AI spending concerns.
- Ipek Ozkardeskaya, senior analyst at Swissquote Bank
Intel saw its stock plunge more than 25% following a warning from the chipmaker that it expects to burn cash this year. The company pointed to a sluggish personal computer market, ongoing manufacturing bottlenecks, and substantial investments required to scale up its production capacity as key drivers behind the financial strain.
Alphabet slipped 0.6%, adding to its losses following a record selloff in the previous session. The decline came after the Google parent company posted disappointing search-advertising results alongside a sharp rise in cash outflows.
Shares of Amazon.com dropped 6.3% in premarket trading following the company's report of a significant cash outflow during the third quarter. The decline was further fueled by management signaling a plan to increase capital expenditure next year, piling onto its already high spending levels.
Despite Friday's decline, the S&P 500 and Nasdaq remained on course for weekly gains, supported by a brief recovery in AI-linked stocks earlier in the week following Anthropic's US IPO filing. However, the Nasdaq was headed for its first monthly decline in three months. Investors also assessed expectations of more than 50 basis points of Fed rate increases by mid-2027. Elsewhere, Chevron and Exxon Mobil gained 1.5% each after beating profit estimates, while Reddit fell 19.5% following a weak user-growth outlook.
The combined spending of Amazon, Alphabet, Microsoft and Meta exceeded $200 billion in the third quarter, according to Ipek Ozkardeskaya, senior analyst at Swissquote Bank. She warned that higher financing costs could absorb a larger share of the cash generated by these companies, leaving less available for expansion and debt repayment. Several companies have turned to bond markets to finance their AI investments, adding to concerns about the sustainability of such spending as borrowing costs rise.
Alphabet slipped another 0.6%, extending its losses following a record selloff in the previous session. Investors remained concerned about disappointing search advertising results and rising cash outflows at the Google parent. The broader semiconductor sector also faced selling pressure, with Nvidia falling 3% and AMD declining 8.7%. Meta also reported cash burn in the September quarter, while Microsoft stood out with a stronger-than-expected cash flow despite raising $25 billion through a debt sale.
Amazon shares dropped 6.3% in premarket trading after the company reported significant cash outflows in the September quarter and signalled another increase in capital expenditure next year. Intel plunged more than 25% after warning that it expects to burn cash this year, citing weak PC demand, manufacturing bottlenecks and heavy investment in expanding production. Together, the two companies risked losing around $300 billion in market value if the declines held.
US stock futures came under sharp selling pressure on Friday, with Nasdaq futures falling 2.41%, as investors reassessed the cost of artificial intelligence investments. Amazon's plans for higher capital expenditure and Intel's warning of cash burn intensified concerns over the scale of spending required to build AI infrastructure and how quickly companies could generate returns. Dow futures rose 0.17%, while S&P 500 futures declined 1.03%.