Intel plunges 29% as AI spending fears trigger worst market day since June

Wall Street ended its worst trading session since June on Friday.

Concerns that artificial intelligence spending had inflated stock prices drove a sharp sell-off in technology shares. The S&P 500 dropped 1.8 percent, marking its lowest point since June. The Nasdaq composite fell 2.9 percent, while the Dow Jones Industrial Average lost 1.1 percent.

Intel led the decline. Its stock sank nearly 29 percent, its worst performance since 1974. The chipmaker issued a profit forecast for the final quarter of the year that fell below analyst expectations. CEO Lip-Bu Tan stated that the personal computer industry continues to face pressure. This drop occurred despite the company reporting a stronger profit for the latest quarter than analysts had predicted.

Amazon’s earnings report also contributed to market anxiety. Investors questioned the scale of corporate spending on AI investments. Treasury yields fell as investors sought safer assets, even as oil prices rose.

This market volatility occurred alongside several major political developments. President Donald Trump confirmed he will hold in-person rallies in Iowa and Kansas on Sunday. He reversed a previous decision to hold telerallies after receiving calls from local allies. Trump said those contacts told him he would be better in person than on video. He emphasized the need to win Kansas and Iowa to secure the Senate majority.

The Justice Department announced the sale of 500 Patriot air-defense interceptors to Ukraine. The State Department stated the $2.1 billion package is funded entirely by U.S. partners and allies. This approval followed warnings from Ukrainian President Volodymyr Zelenskyy that the country had nearly run out of the weapons needed to intercept Russian ballistic missiles.

Sen. Roger Marshall, the Republican candidate in Kansas, faces a new lawsuit from a former patient. Meischa Zimmerman sued in Barton County District Court, accusing the retired obstetrician of charging illegally high interest rates on unpaid bills. The New York Times reported that Marshall or his practice filed more than 700 lawsuits against patients over 35 years. In 81 of those cases, patients were arrested for missing court dates.