The artificial intelligence trade broke down for a third consecutive week, and the damage this time came straight from the balance sheets of the companies funding the buildout. Two weeks ago, investors worried about valuations.
Last week, they asked who would pay the bill. This week, Alphabet Inc.
com Inc. (NASDAQ:AMZN) and Intel Corp.
(NASDAQ:INTC) handed them the invoice. 5% for the week, its third straight weekly decline.
The S&P 500 was off about 2% on the day and close to 1% on the week. • Alphabet stock is facing resistance.
Why are GOOG shares declining? Alphabet’s Worst Week In 15 Years Alphabet Inc.
lit the fuse on Wednesday night. Revenue came in short of expectations, free cash flow swung to a roughly $9 billion outflow, and management signaled that capital spending will climb again in 2027.
Thursday’s 13% drop was the steepest single-session decline in the stock’s history and erased roughly $482 billion of market value. Shares are down about 13% for the week, the worst weekly showing since August 2011.
The pain spread across the sector. The Communication Services Select Sector SPDR Fund (NYSE:XLC) is on track for an eighth straight daily loss, its longest losing streak since the fund launched in 2018.
Amazon added to the pressure Thursday night. 96 consensus, while the company said 2027 capital expenditures will be “meaningfully more” than this year’s roughly $220 billion.
8%, Small Caps Rally on Strong GDP Growth: Stock Market Today Intel’s Worst Day Ever Intel Corp. (NASDAQ:INTC) delivered the week’s most violent move.
07 billion analysts expected, and said it does not expect positive cash flow this year as PC demand weakens. Shares collapsed about 30% on Friday, the worst session in Intel’s trading history, with no comparable decline in more than 11,700 sessions since 1980.
75% to 4% on Wednesday. The decision passed 10-2, with Gov.
Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favor of a quarter-point hike. Chair Kevin Warsh declined to commit to a December move.
“I don’t believe in forward guidance absent exigent circumstances,” he said. Asked whether higher borrowing costs could cool the AI boom, he offered a line that aged quickly over the next 48 hours.
“Interest rates get in the cracks. Interest rates affect directly or indirectly almost everything,” Warsh said.
He indicated that investors have grown more selective about where they put money, noting that credit spreads on some assets have blown out while financial conditions have tightened for others. Thursday’s data gave both camps ammunition.
4%. Weekly jobless claims slipped to 194,000, below the 199,000 expected.
CME FedWatch now prices a 74% probability of a December rate hike, down from 85% right after Wednesday’s meeting. Treasuries Catch A Bid Bonds became the safe harbor.
89% earlier in the day, the lowest since early September. 31%.
Health Care’s Best Month Ever Against the Market As money fled technology, defensive sectors absorbed it. The Health Care Select Sector SPDR Fund (NYSE:XLV) is on track for its best month ever relative to the SPDR S&P 500 ETF Trust (NYSE:SPY), outperforming by 11% in October, according to data going back to 1998.
9%. The iShares Biotechnology ETF (NASDAQ:IBB) climbed to an all-time high this week.
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) surged 11% on Friday, its best day since October 2025.
Best and Worst S&P 500 Stocks This Week The top performers in the S&P 500 this week were Carvana Co. 6%, and Vertiv Holdings Co.
(NYSE:VRT), up 18%. At the bottom, Reddit Inc.
(NYSE:RDDT) lost about 38% after CEO Steve Huffman warned daily active visitors could fall by a low double-digit percentage in the fourth quarter. ServiceNow Inc.
(NYSE:NOW) dropped nearly 35% after its quarterly report, and Intel fell close to 27%. 9% slide.
Records and Streaks Several stocks are writing history. Albemarle Corp.
9% over the stretch, the longest losing streak in data going back to 1994. The previous record was nine weeks in March 2000.
Interactive Brokers Group Inc. 5% decline that doubles as a new record, while SanDisk Corp.
6%. Boeing Co.
(NYSE:BA) is down eight weeks in a row, its longest losing stretch since October 2023, and Robinhood Markets Inc. 7%.
On the upside, Marathon Petroleum Corp. (NYSE:MPC) is set for a 10th straight monthly gain, up 171%, matching its record from March 2013.
HCA Healthcare Inc. (NYSE:HCA) has risen five months in a row, tying its March 2024 record, and Marriott International Inc.
(NASDAQ:MAR) is up seven straight weeks. Among Friday’s other movers, FedEx Freight Holding Co.
(NASDAQ:FDXF) jumped 16%, its best day since May, and Global Payments Inc. (NYSE:GPN) rose 10%.
Illumina Inc. (NASDAQ:ILMN) dropped 19%, its worst session since October 2016.
Detroit Rides The Rotation General Motors Co. (NYSE:GM) gained about 15% this week, its best weekly performance since October 2025.
5% on Tuesday after GM announced it will move its listing to Nasdaq on Nov. 17 and invest in its Lansing Delta Township plant to build hybrid vehicles.
Ford Motor Co. (NYSE:F) added about 5% after third-quarter results topped expectations.
24 billion estimate, and adjusted EPS of 49 cents beat the 41-cent consensus. 5 billion.
“Ford delivered a strong quarter as we’re entering a defining phase of the company’s transformation,” CEO Jim Farley said. See More: Top Momentum Stocks What’s Next: Apple, Midterms and Jobs Next week brings no Fed meeting, but it does test whether the AI sell-off can find a floor.
Apple Inc. (NASDAQ:AAPL) and Palantir Technologies Inc.
(NASDAQ:PLTR) report Monday after the close. Advanced Micro Devices Inc.
(NASDAQ:AMD) and Super Micro Computer Inc. (NASDAQ:SMCI) follow on Tuesday, the same day Americans vote in the midterm elections.
Qualcomm Inc. (NASDAQ:QCOM) and Arm Holdings plc (NASDAQ:ARM) report Wednesday.
The week closes with the October jobs report on Friday, Nov. 6, the last payrolls print before the Fed’s December decision.
After September’s 29,000 gain, traders will be watching for any sign the labor market is softening enough to take a December hike off the table.
