NEW YORK, Oct. 30 (Xinhua) -- U.S. stocks fell sharply on Friday, suffering a second consecutive day of steep losses, as disappointing quarterly reports from tech giants Amazon and Alphabet renewed anxieties over the sustainability of massive artificial intelligence capital expenditures.
The Dow Jones Industrial Average dropped 572.25 points, or 1.09 percent, to 51,770.31. The benchmark S&P 500 sank 140.32 points, or 1.82 percent, to 7,580.07, while the tech-heavy Nasdaq Composite Index plunged 747.73 points, or 2.86 percent, finishing at 25,437.
Six of the 11 primary S&P 500 sectors closed in positive territory, with energy and consumer staples leading the advancers by climbing 1.91 percent and 1.38 percent, respectively. Technology paced the decliners by a wide margin, tumbling 4.24 percent, followed by industrials, which lost 1.57 percent.
Technology equities endured severe selling pressure after rare earnings misses from mega-cap bellwethers shook investor confidence in the AI boom. Amazon shares declined 1.41 percent, while Alphabet extended a sharp downward trajectory after recording its steepest single-day percentage drop in more than two decades.
The rout extended into the semiconductor and hardware spaces. Intel plummeted 28.58 percent after the chipmaker delivered a fourth-quarter revenue outlook that fell well short of Wall Street estimates. Concurrently, data storage firm SanDisk plunged 13.47 percent despite beating first-quarter earnings forecasts, as investors looked past its announcement of an eight-for-one forward stock split.
Commodity markets added fresh headwinds to broader sentiment as crude oil futures gained over 2 percent. International benchmark Brent crude jumped to 117.64 U.S. dollars per barrel, while West Texas Intermediate crude climbed to 104.12 dollars per barrel, stoking persistent headline inflation worries.
Monetary policy anxieties were reinforced by hawkish commentary from central bank policymakers following Wednesday's rate-pause decision. Federal Reserve Bank of St. Louis President Alberto Musalem warned that inflation remains excessively high and broad-based, emphasizing that the central bank needs to act soon to prevent elevated prices from becoming entrenched.
Concurrently, Federal Reserve Bank of Richmond President Tom Barkin signaled that monetary policy remains pointed toward higher borrowing costs to rein in persistent inflation against the backdrop of firm demand. He noted that the key question facing the Fed is the pace and extent of future rate increases. ■