# Instant Reaction: Wall Street Gets AI Wake-Up Call with Deep Tech Selloff

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 30 Oct 2026, 3:52.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/3b082bbf-691d-443b-bc59-ae2b0012ff93/5ab076f3-6d5d-4c8a-829a-b4f3015cb879/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Wall Street got a reality check as a bruising selloff in technology shares fueled concern the artificial-intelligence frenzy that has powered the equity bull market might be overblown. Disappointing tech results spurred the worst drop for stocks since June, with the Nasdaq 100 falling 3.5% and briefly crossing the threshold of a technical correction. Intel Corp. slid the most in over four decades as its outlook missed estimates. Amazon.com Inc. slipped 1.4% on greater capital spending. The S&P 500 dropped 1.8%, breaching its key 100-day moving average. For a quick recap of a bruising trade for big tech and equities broadly, hosts Tim Stenovec and Jess Menton speak with Bloomberg Markets Live blog managing editor Kristine Aquino. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio, news.
[0:09] Speaker 2: This is a breaking news update from Bloomberg.
[0:12] Speaker 3: Instant reaction and analysis from our 3,000 journalists and analysts
[0:17] Speaker 3: around the world. Taking a look at the equity markets,
[0:20] Speaker 3: the S & P 500 fell 1.8%, the Nasdaq Composite
[0:23] Speaker 3: down 2.9%, the Dow down a little over 1%. Christina Kino,
[0:28] Speaker 3: Bloomberg News Markets Live blog, Managing Editor.
[0:32] Speaker 2: How do you explain today's sell-off?
[0:34] Speaker 1: I mean, honestly, Tim, the explanation eludes many of us
[0:38] Speaker 1: watching markets today because, you know, before today, the explanation
[0:41] Speaker 1: was that, oh, well, this is just a rotation, right?
[0:43] Speaker 2: We've seen this before.
[0:45] Speaker 1: This has actually been happening beneath the surface, even though
[0:47] Speaker 1: the index level moves haven't necessarily shown it. We've seen
[0:52] Speaker 1: investors kind of gone back and forth out of tech
[0:54] Speaker 1: into non-tech sectors and then back again. And then today,
[0:59] Speaker 1: that theory just went out the window because everything was
[1:03] Speaker 1: selling off. I was looking at the equal weight S &
[1:06] Speaker 1: P 500 earlier. It was still in the green at
[1:08] Speaker 1: the beginning of the session. I, that fell by the
[1:11] Speaker 1: wayside by the close. And so now it's kind of,
[1:13] Speaker 1: the question is a broad sell-off.
[1:15] Speaker 2: Is it a foot? Also the question I have as well.
[1:18] Speaker 1: Right.
[1:18] Speaker 2: Well, the VIX ended up closing. So it closes around
[1:21] Speaker 2: four 15, 15 minutes after, but it, yes, exactly. So
[1:24] Speaker 2: it closed below 20.
[1:25] Speaker 1: It was a 19, a spot for there.
[1:28] Speaker 2: So even though we.
[1:29] Speaker 1: Saw it spike around 24, 25 earlier today, we did see,
[1:32] Speaker 1: we were talking about this earlier that volatility and some
[1:34] Speaker 1: of it coming in toward the closing bell.
[1:37] Speaker 2: So whenever you're speaking with your sources, whether they're watching.
[1:39] Speaker 1: Price technicians, what do they think that means for the
[1:42] Speaker 1: setup potentially?
[1:42] Speaker 2: Does that bode well if you're going into Monday?
[1:45] Speaker 3: Yeah.
[1:46] Speaker 1: I mean, very interesting too, Jess, because again, even in
[1:48] Speaker 1: volatility markets, there's so much going on beneath the surface
[1:51] Speaker 1: that the index moves aren't necessarily reflecting. Those micro levels. Absolutely.
[1:55] Speaker 1: And we're seeing a lot of hedging to one side
[1:58] Speaker 1: or the other, beneath that surface. And so what that's
[2:01] Speaker 1: telling me is there's not one kind of macro or catalyst,
[2:07] Speaker 1: one big catalyst that's moving everything. There's a lot of
[2:09] Speaker 1: kind of different little things that investors are responding to.
[2:13] Speaker 1: And that's where we're not necessarily kind of seeing those
[2:16] Speaker 1: big index moves apart from today that we've seen. And
[2:20] Speaker 1: moving forward, that really, I think maybe creates a little
[2:24] Speaker 1: bit more bifurcation in markets, right? And that's kind of
[2:26] Speaker 1: the big question, the existential question that we're trying to
[2:29] Speaker 1: get at is, what's going to separate the winners and
[2:32] Speaker 1: losers now heading into next week? From the earnings perspective,
[2:36] Speaker 1: was it cash? And then just on a broad markets perspective,
[2:39] Speaker 1: is it, right?
[2:40] Speaker 3: I mean, we might have to have this conversation with
[2:42] Speaker 3: you on Tuesday after we get from Apple. Because that
[2:45] Speaker 3: could be one that shows us that, okay, maybe investors
[2:48] Speaker 3: are continuing to, at least right now, award companies, their
[2:54] Speaker 3: favorite companies that are not spending so much on CapEx.
[2:57] Speaker 2: Yeah, absolutely.
[2:57] Speaker 1: I mean, that seems to have become the sticking point
[3:00] Speaker 1: now in this earnings season, right? Because even though we've
[3:02] Speaker 1: seen still kind of a healthy set of results from
[3:05] Speaker 1: the big tech companies, but it really is all about
[3:07] Speaker 1: that cash flow now, that CapEx figure, and whether they're
[3:11] Speaker 1: showing enough to justify how much they're spending on AI. Now, Apple, though,
[3:17] Speaker 1: I'm kind of interested in how their push toward hardware
[3:21] Speaker 1: and products is going to fare when we're in this
[3:24] Speaker 1: environment where affordability is also an issue.
[3:27] Speaker 3: Yeah, but look at how quickly they sold out, and
[3:30] Speaker 3: we don't know the exact inventory of the foldable phones.
[3:33] Speaker 2: Because it's a $ 2, 000 phone. That's true. You have to
[3:35] Speaker 2: be at a certain part of the K to drop
[3:37] Speaker 2: 2K on a smartphone. That's right, yeah.
[3:39] Speaker 1: I mean, yeah, perhaps the K-shaped economy is going to
[3:42] Speaker 1: help them in this case, catering to Doza, the premium
[3:44] Speaker 1: part of the K.

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