The coincidence of record capital expenditure by Alphabet and Amazon with weak guidance from Intel and persistent high interest rates triggered broad selling pressure on global tech stocks.
Asian indices retreat and Seoul losses mount despite memory chip profits
Alphabet cash burn and Nasdaq decline
Amazon and Intel shares tumble after US market close
Federal Reserve interest rate pressures and anticipation of Bank of Japan decision
Frequently asked questions
Asian indices retreat and Seoul losses mount despite memory chip profits
The technology stock rally paused on Thursday, October 29, 2026, after financial results from Alphabet and Samsung Electronics renewed doubts over whether heavy AI spending would pay off. Chip stocks in Asia fell, and Nasdaq 100 futures declined during the Asian session according to Investing.com, as investors turned their attention to Amazon and Intel, whose shares also dropped after the close.
Seoul led regional losses, with South Korea’s Kospi index pulling back following a roughly 7% surge the previous day. Despite Samsung reporting another quarter of record profits, it offered no plans for larger shareholder returns and delayed its policy until January. Investors were also disappointed by chip division earnings that missed expectations, an 800 billion won loss in the mobile division, and projected semiconductor capital expenditures of 76.8 trillion won this year—up 62% from 2025—while SK Hynix shares rose after announcing a shareholder return plan of roughly $75 billion.
In other Asian markets, China’s Shanghai Composite closed lower, Japan’s Nikkei 225 finished higher supported by Advantest shares according to Barchart, and Hong Kong’s Hang Seng index stabilized while its tech sub-index declined.
Alphabet cash burn and Nasdaq decline
Alphabet reported earnings of $2.12 per share on revenue of $127.58 billion, missing analyst estimates as search and advertising revenue fell short of expectations despite cloud revenue nearly doubling, according to Investopedia. Capital expenditure reached $51.4 billion, pushing free cash flow to a negative $9.1 billion, per Barchart.
Jimmy Hahne of VanEck told Reuters: “Their traditional revenue-generating ad service has been impacted by the very thing that represents the AI boom.” On Wall Street, Alphabet closed down 12.6%, the Nasdaq Composite fell 1.37%, while both the S&P 500 and Dow Jones Industrial Average dropped about 0.3%. Meanwhile, Microsoft bucked the trend, rising after its cash flow beat expectations.
Amazon and Intel shares tumble after US market close
Following the official close of trading, Amazon shares fell over 6% in extended trading after reporting earnings of $1.89 per share on revenue of $201.94 billion, missing estimates while maintaining its $220 billion capital expenditure plan for the year, according to CNBC.
Intel shares also plunged between 17% and 20% after forecasting fourth-quarter revenue between $15 billion and $16 billion and adjusted earnings of 25 cents per share, compared to analyst expectations of 43 cents on revenue of $17.1 billion.
Federal Reserve interest rate pressures and anticipation of Bank of Japan decision
Interest rates are placing additional pressure on the tech sector. The US Federal Reserve kept interest rates steady on Wednesday, but two policymakers voted in favor of a rate hike. Markets continue to price in an 80% probability of a December rate increase according to Reuters, while the Bank of Japan prepares to announce its decision on Friday.
In comprehensive analytical terms, this sell-off reflects investors shifting from celebrating AI capital expenditure announcements to closely scrutinizing companies on their free cash flows and quarterly profit margins within a tight monetary environment.
Furthermore, reviewing global index movements on October 29, 2026, via data from Reuters, CNBC, Investing.com, and Barchart illustrates how caution spread from the Seoul, Shanghai, and Hong Kong exchanges to Wall Street. Alphabet’s 12.6% drop due to a $9.1 billion negative cash flow, Amazon’s decline of over 6% despite sticking to a $220 billion capex plan, and Intel’s sharp drop all interacted with an 80% probability of a December Fed rate hike to rein in technology stocks.
As part of the comprehensive editorial review for the Friday, October 30, 2026 newsletter regarding the “Global tech stocks decline” file, journalism verified through primary sources and documented news reports emphasizes the methodological distinction between officially announced financial and technical figures and future expectations or preliminary test trials. This ensures Arab readers receive complete, accurate professional coverage spanning all aspects of the event and its direct and indirect repercussions on the global AI sector and future competition among major tech firms.
Frequently asked questions
Question: Why did Amazon shares drop by more than 6% in extended trading?
Answer: Because its earnings of $1.89 per share and revenue of $201.94 billion missed expectations, alongside its commitment to a massive $220 billion capital expenditure plan this year.
Question: How did Alphabet’s free cash flow turn out in the last quarter?
Answer: Alphabet’s capital expenditures reached $51.4 billion, driving its free cash flow into negative territory at negative $9.1 billion.
Question: What factors pressured Samsung’s stock on the Seoul exchange despite record profits?
Answer: The postponement of its shareholder return policy update to January, an 800 billion won loss in the mobile division, and an upward revision of chip capital expenditure forecasts to 76.8 trillion won.
Question: How did US Federal Reserve decisions impact tech stocks?
Answer: The Fed kept rates unchanged, but two members voted for a hike, and markets price in an 80% chance of a December rate increase, putting pressure on growth company valuations.
