Chip Stocks Drop 7% at Midday Friday as the Nasdaq Falls 2.6% and the S&P 500 Slips Below Its September Close

A broad selloff in semiconductor shares pushed U.S. stocks sharply lower at midday on Friday, October 30, 2026, deepening a two-day retreat in technology stocks and leaving the S&P 500 below the level where it began October.

Around 12:03 p.m. ET, the S&P 500 was down 123.49 points, or 1.6%, at 7,596.90, according to Yahoo Finance index data. The Nasdaq Composite fell 683.85 points, or 2.6%, to 25,500.88, and the Dow Jones Industrial Average lost 363.91 points, or 0.7%, to 51,978.65. The small-cap Russell 2000 was down about 1.8% at 2,808.29.

Semiconductors lead the decline

The Philadelphia Semiconductor Index was the weakest major gauge, down about 7.4% at 10,661.96 shortly after noon. Intel, which issued a weaker-than-expected fourth-quarter outlook after Thursday's close, was down about 29% at roughly $65. The selling spread well beyond Intel: Advanced Micro Devices fell about 10%, Arm Holdings about 11%, Broadcom and Micron Technology about 5.7% each, and Taiwan Semiconductor Manufacturing's U.S.-listed shares about 5.6%. Nvidia was down close to 4%.

Investopedia reported that stocks were "under pressure again Friday amid mounting concerns about the health of the AI trade," noting that the iShares Semiconductor ETF counts Intel and AMD as its two largest holdings. Amazon, which reported third-quarter results after Thursday's close that missed expectations and showed a drop in free cash flow tied to AI spending, was down about 2% at midday.

Thursday's session had already been weak for technology. The Nasdaq fell 1.6% that day after Alphabet's quarterly report disappointed investors, Investopedia said.

October gain erased

The Associated Press reported that the S&P 500 was on track to erase its gain for October, even though the index set its all-time high during the month. Yahoo Finance data show the S&P 500 closed September at 7,651.54, so the midday level was about 0.7% below that mark. The index's highest close of the month was 7,818.93 on October 6.

Investopedia noted that the major indexes had entered Friday on track for weekly gains. At midday the S&P 500 was below its October 23 close of 7,623.68, which would leave it with a weekly decline if those levels held through the close.

Volatility, bonds and crypto

The Cboe Volatility Index, a measure of expected swings in the S&P 500, rose to about 20.16 from 17.20 on Thursday. Treasuries attracted buyers: the 10-year yield eased to about 4.95% from 4.99%, and the five-year yield fell to about 4.74% from 4.80%.

Cryptocurrency-linked shares were among the hardest hit outside the chip sector. Coinbase Global was down about 13% and Strategy, the largest corporate holder of bitcoin, about 7%, as bitcoin traded near $77,300. Investopedia said bitcoin had dropped to $76,600 earlier in the session from a high near $82,000 on Thursday.

Where buyers stepped in

Not every sector fell. Energy shares rose with crude oil, which climbed as tensions in the Strait of Hormuz persisted: Exxon Mobil was up about 1.4% and Chevron about 1.6%, while West Texas Intermediate crude futures traded near $104 a barrel. Eli Lilly gained about 3.4% to around $1,421, extending its advance after Thursday's earnings-driven rally. The AP said much of the market outside technology was holding up better for a second straight day.

Global markets

Overseas stocks also weakened. As of late morning in New York, the Euro Stoxx 50 was down about 1.2% and Germany's DAX about 0.8%, while London's FTSE 100 was roughly flat. In Asia, Japan's Nikkei 225 closed down about 2.1% at 63,290.11, while Hong Kong's Hang Seng Index ended up about 0.9%.

What comes next

Friday is the final trading day of October. Investors are also heading into the U.S. midterm elections on November 3, with the Federal Reserve's next policy decision due in December after the central bank held rates at its meeting this week.

All figures above are intraday and will change before the 4 p.m. ET close.