Stock market selloff raises fears of AI bubble
The gist
Alphabet shares fell over 12.6% on Thursday, wiping out more than $500 billion in market value.
Investors are questioning whether massive AI spending will pay off.
How it unfolded
- Oct 26, 2026Reuters reported that while global tech stocks teetered, Chinese tech stocks had already crashed as lofty valuations collapsed under worries about AI demand and export curbs.
- Oct 29, 2026Alphabet shares plummeted over 12.6%, its worst single trading day ever and the second-largest single-day wipeout of any company's stock in history, erasing over $500 billion in market value. Amazon reported AI spending continuing faster than expected and weaker-than-expected summer profit.
- Oct 30, 2026Tech stocks plunged Friday morning, putting the Nasdaq 100 on course for a more than $1 trillion drop. Intel tumbled 30.7% after its forecast fell short, Nvidia fell 4.9%, and the S&P 500 dropped 2.3%.