Nasdaq drops 2.2% after tech earnings disappoint

The Nasdaq Composite dropped 2.2 percent in early trading on Friday as Wall Street stocks fell after technology earnings added to worries about the artificial intelligence investment boom.

About 20 minutes into trading, the Dow Jones Industrial Average was down 0.3 percent at 52,180.95. The S&P 500 fell 1.2 percent to 7,626.19, while the Nasdaq dropped to 25,598.02.

Intel shares slid nearly 30 percent after poor results. Amazon lost 1.8 percent, adding to pressure after earlier declines by Meta and Google parent Alphabet following their earnings reports.

Chris Low of FHN Financial said most of the market move was a reaction to tech earnings, especially from some of the sector’s biggest companies. He said large technology companies were showing “growing pains” as they pursued AI infrastructure spending.

Investor enthusiasm for a multi-trillion-dollar AI infrastructure buildout has supported equities in recent years. The market has also faced questions about the payoff from spending plans at Amazon, Google and other technology companies, as well as questions about financing and job losses.