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Wall Street ended October with a sharp selloff. The Nasdaq plunged 2.86% on Friday. The S&P 500 fell 1.82%, its worst day since June. The Dow lost 572 points, while small stocks fell 1.66%.

Intel led the losses. Its shares crashed 28.58% after a weak sales forecast. The selloff spread to chip stocks, which sank 7.2%. The drop came after a tough week for Big Tech. Google plunged 12.6% on Thursday. Amazon's earnings raised new fears about the cost of AI.

But the full week told a different story. The Nasdaq lost 2.0%, while small stocks gained 1.3%. Now November begins with 3 major tests: Apple earnings, the U.S. midterm elections, and the October jobs report.

Friday, October 30

For the full week:

Three forces drove Friday's selloff. Intel's weak forecast hit chip stocks. Investors feared that high costs and slower sales could hurt profits. Google and Amazon had already raised doubts about the vast sums being spent on AI. Buyers wanted more proof that those costs would lead to stronger profits and cash flow. 

Money also moved away from tech. Bond yields fell as investors bought U.S. government debt. Energy and food stocks rose while technology stocks sank. The week began with a rally. It ended with Wall Street taking a much harder look at the price of Big Tech.

Intel suffered one of its worst days on record Friday. Shares plunged 28.58% after the firm gave a weak forecast for the final quarter of the year. Intel expects sales of $15 billion–$16 billion. The forecast raised fears that weak demand and high costs could hurt profits.

The damage spread across chip stocks. AMD fell about 10.9%, while Nvidia lost roughly 4.2%. The wider chip stock index sank 7.2%. The selloff showed that even firms tied to AI can face sharp losses when sales or profits fall short of forecasts. Demand for advanced chips remains strong. But investors are now paying far more attention to costs and cash flow. Intel's crash showed how fast a stock can fall when Wall Street loses faith in future profits.

Intel's collapse followed a tough week for some of the world's largest tech firms. Google parent Alphabet plunged 12.64% on Thursday after its results failed to meet high hopes. Amazon also faced selling after reporting earnings. Amazon's sales rose 12% to $201.9 billion. Its cloud business grew 39.3%, while operating income reached a record $28.1 billion.

Yet investors focused on cash. Amazon reported negative free cash flow of $42.4 billion over the past 12 months, compared with positive $14.8 billion a year earlier. Heavy spending on AI and data centers drove much of that change.

Google faced similar concerns over the cost of new chips, servers, and power. The problem is not that AI demand has stopped growing. It is that firms must spend huge sums today in hopes of earning more tomorrow. For much of the AI boom, fast sales growth was enough to lift stocks. Now Wall Street wants proof that the spending will pay off.

Friday's losses were broad, but the full week showed a clear split. The Nasdaq lost 2.00% over 5 trading days. The Russell 2000 gained 1.29%. That left small stocks ahead by 3.29 percentage points.

The gap matters because the largest tech firms make up a big share of the Nasdaq and S&P 500. When those firms fall, they can pull the major indexes down even when many other stocks hold up.

The S&P 500 Equal Weight Index, which gives each stock the same share, gained about 0.8% for the week. The regular S&P 500 lost 0.57%. That shows the average large stock did better than the biggest names that drive the index. Small stocks were not immune. The Russell fell 1.66% on Friday. But its weekly gain showed that buyers were still finding stocks they wanted to own outside Big Tech.

U.S. government bonds gained as stocks fell Friday. The 10-year Treasury yield dropped to about 4.94%, down from roughly 4.99% Thursday. Bond yields fall when bond prices rise. That move showed stronger demand for government debt as investors pulled money from stocks.

Oil moved higher. U.S. crude settled near $102.95 a barrel. Energy stocks gained 1.91%, making them Friday's strongest group. High oil prices remain a risk for the economy. They raise fuel costs for airlines, truckers, and factories. Some of those costs can reach shoppers.

That matters because inflation is still above the Fed's 2% goal. The Fed held rates at 3.75%–4.00% last week. High oil prices could make it harder to cut rates soon.

The new month begins with a packed calendar.

Monday: Apple Earnings

Apple reports after the closing bell. Wall Street expects sales near $113.4 billion. Investors will watch iPhone demand, profits, and what Apple says about the months ahead.

A strong report could help calm tech stocks after Friday's losses. A weak forecast could add more pressure.

Tuesday: U.S. Midterm Elections

Americans vote on November 3. The results will decide which party controls Congress. That could shape taxes, government spending, and new laws. Investors will watch for changes that could affect company profits and the economy.

Friday: October Jobs Report

The U.S. jobs report arrives on November 6 at 8:30 a.m. ET. It will show how many jobs were added in October and whether the job market is slowing. Strong hiring could give the Fed more reason to keep rates high. Weak hiring could raise fears that the economy is losing speed. The report may also change what traders expect from the Fed at its next meeting.

Friday's selloff left Wall Street facing a hard question. Can Big Tech keep spending billions on AI and still earn enough cash to make those costs worthwhile? Google, Amazon, and Intel gave investors fresh reasons to worry. The Nasdaq lost 2.86% on Friday and 2.00% for the week. Yet the Russell 2000 gained 1.29% over the same 5 days.

That split shows that investors have not given up on stocks. They are looking more closely at price, profit, and cash flow. The Fed adds another test. Inflation remains high, and oil is still expensive. That could keep loan costs high for firms and households. Apple earnings and the jobs report will now help set the tone for November.

Strong results could give buyers a reason to return. Weak profits or fresh signs of high inflation could bring more selling. The week's lesson is simple: Wall Street still wants growth, but it wants proof that growth can pay for itself.

Intel crashed. The Nasdaq sank. Small stocks held up better. November will test whether buyers return to Big Tech or keep moving into other parts of the market. The next winners may not be the firms spending the most on AI. They may be the ones showing the clearest path from sales to cash.