Tech stocks and crypto are crashing against a perfect storm as markets head for their worst day in months
Traders are running scared this Halloween weekend as a combustible mix of market forces have sparked a selloff in major technology stocks and cryptocurrencies.
Weak earnings reports from AI hyper-scalers including Amazon and Google, along with a historic hack on crypto exchange Binance, have left investors in high-growth assets feeling like they have nowhere to turn.
As of this writing, the tech-heavy Nasdaq Composite was down 3.3% on Friday, its worst day since June. The Dow Jones Industrial Average and S&P 500 were also lower, though not as dramatically.
Stocks across tech take a hit
Intel Corporation (Nasdaq: INTC) is leading the selloff, with shares down a staggering 30% after it reported a weaker-than-expected outlook for its fourth quarter. According to CNBC, it was the tech giant’s worst day in more than 50 years.
Memory chip and semiconductor companies, including Nvidia Corporation (Nasdaq: NVDA) and Micron Technologies (Nasdaq: MU), are also taking a hit.
Sandisk Corporation (Nasdaq: SNDK) shares were down more than 14% Friday as of this writing, extending losses that have seen the stock plummet more than 35% over the last month.
The current tech earnings season has deepened fears that massive spending on AI buildouts—most notably in the form of data centers—may not bear monetizable fruit in the long run.
Google, for example, reported lower-than-expected ad revenue for its all-important Search division, a sign that its own AI chatbots could be cannibalizing its core product. Google parent Alphabet (Nasdaq: GOOG) suffered its worst-ever post-earnings stock decline on Thursday after the report.
Binance hack rattles crypto
On the crypto side, crypto-adjacent companies saw their share prices fall dramatically following news that hackers made off with $6.3 billion in an attack on Binance, the world’s largest cryptocurrency exchange. Cybersecurity experts linked to an infamous North Korean hacking group.
Binance is privately held, but fellow crypto exchange Coinbase Global (Nasdaq: COIN) saw its stock price tumble more than 10% on Friday.
This story is developing…
