Key facts
- Alphabet shares fell 12.6% after hours, erasing $500 billion in market value.
- Intel shares dropped 23% in after-hours trading.
- Amazon stocks fell 7%.
- Nasdaq 100 futures were down 1.4%.
- South Korea's KOSPI slumped 5% for the month.
- Japan's Nikkei fell 3%.
Asian stocks slumped and bonds surged on Friday as investors worried that massive and rising artificial intelligence spending by tech giants may not deliver sufficient returns. Shares in Alphabet, Google's parent company, fell 12.6% after hours, wiping out $500 billion in market value as heavy AI investments turned its cash flow negative. Intel shares plunged 23% in after-hours trading, and Amazon stocks dropped 7%, driving Nasdaq 100 futures down 1.4% and hitting chipmakers across Asia. The risk-averse mood also affected cryptocurrencies after a hack at Binance, the world's largest exchange. The Federal Reserve's decision to hold US interest rates steady further spurred the rush into bonds, with benchmark 10-year Treasury yields falling significantly through October.