Tech selloff drags global stocks lower as bonds and oil rise

A retreat from technology stocks pulled global equities lower on October 30, as concerns about the returns from costly artificial intelligence investments drove investors toward U.S. Treasuries. MSCI's worldwide equity index declined 1.4%, reaching 1,117.00.

The Nasdaq Composite stood at 25,500.67 at 12:09 p.m. ET, down 2.61%. The S&P 500 dropped 1.61%, reaching 7,595.93, while the Dow Jones Industrial Average was 0.73% lower at 51,957.95. In Europe, the STOXX 600 declined 0.46%.

Intel shares sank 28% and Amazon declined 1.9%. Both companies' results showed cash consumption as they invested heavily in AI development. Intel said slowing demand for PCs could persist through next year. Alphabet shares fell further after Thursday's 12.6% loss, with its AI expenditure having turned cash flow negative.

Cetera chief investment officer Gene Goldman said investors were questioning whether returns from AI would warrant the capital expenditure. He also pointed to rising oil prices following Middle East attacks and concerns over a Binance hack. Bitcoin was down 1.80% at $77,424.37.

Buying in Treasuries lowered the benchmark 10-year yield by 4.36 basis points to 4.945%, leaving it headed for its biggest monthly fall since late 2023. The 2-year yield declined 5.4 basis points to 4.602%.

Oil prices advanced after a tanker attack in the Strait of Hormuz highlighted supply risks. U.S. crude increased 2% to $104.09 a barrel; Brent gained 2.4% to $117.58 per barrel. Following their earnings, Exxon Mobil shares rose 1.3% and Chevron climbed 3%.

Gold and silver moved lower. Spot gold lost 3%, reaching $3,901.83 an ounce, while spot silver dropped 5.9% to $49.27 an ounce.