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Listen to this article in summarized format At 9:53 a.m. ET, the Dow Jones Industrial Average was down 0.39% at 52,139.41, while the S&P; 500 fell 1.22% to 7,626.38. The Nasdaq Composite declined 2.21% to 25,606.33. The selloff reflected growing investor scrutiny of Big Tech's spending commitments, particularly as companies increasingly rely on debt to finance their expansion. Expectations of higher interest rates also added to concerns about the sustainability of these investments. Intel rout deepens technology selloff Intel shares plunged more than 30%, putting the chipmaker on track for its biggest single day decline on record, after it warned of cash burn this year. Weak demand for personal computers, manufacturing challenges and heavy investments in production capacity weighed on its outlook. The weakness spread across the semiconductor sector. Nvidia fell 3%, while AMD dropped 9.3%. The broader semiconductor index declined 5.7%, with server makers Dell and HP losing around 9% each. Amazon shares slipped 2% after reporting a sharp cash outflow in the third quarter and signalling another increase in capital expenditure next year. Microsoft, meanwhile, delivered a stronger than expected cash flow, although it raised $25 billion through a debt sale. Alphabet extended its losses, falling 1.2% after suffering a record selloff in the previous session on disappointing search advertising results and higher cash outflows. "It's more a question of what is priced into a stock and how much investors are expecting. Alphabet, Amazon and Intel fall into the category where it doesn't take much to trigger a significant disappointment," Art Hogan, chief market strategist at B. Riley Wealth, told Reuters. Defensive stocks outperform technology Consumer staples and healthcare stocks offered some relief, gaining 1.9% and 1.7%, respectively, as investors rotated towards traditionally defensive sectors. Reddit was another major laggard, plunging 26% after CEO Steve Huffman warned that daily active unique visitors could decline by a low double digit percentage in the fourth quarter. All three major indexes were headed for weekly losses, while the Nasdaq was on track to snap its two month winning streak in October. The Federal Reserve's decision to hold interest rates steady earlier this week had done little to ease market concerns. Expectations of further rate increases by mid 2027 added to pressure on technology valuations. (Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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