Tech Stocks Tumble, but Broader Market Is Holding On

The artificial intelligence trade hit the skids on Friday, with stocks of some tech giants falling by double digits, as investors fretted about whether the industry’s debt-fueled spending spree still justified such high share prices.

Futures for the S&P 500 index were pointing to a decline of 1 percent when stocks resume trading in the last session of the month, with tech stocks heading for a deeper decline. Shares of Intel plunged after the chipmaker reported financial results that fell short of Wall Street’s expectations. Amazon’s stock fell 6 percent in premarket trading, after its earnings also missed analysts’ forecasts.

But in the face of this tech sell-off, the broader market has showed resilience in recent weeks, bolstered by strength in sectors like energy and utilities and in companies selling everyday goods. Exxon Mobil shares were up nearly 2 percent in premarket trading.

The S&P 500 is on course to post a small loss for October, extending a modest 0.5 percent loss in September. Still, the index remains only slightly below its record high.

For some investors, this is an important signal, helping allay fears that should the A.I. trade falter the entire market will fall with it. It points to investor confidence in sectors that for years had languished. And it shows how even as worries about some A.I. companies have intensified, money has not fled the stock market and is instead being redeployed within it.

“Money is sloshing around,” said Chris Galipeau, an economist at the Franklin Templeton Institute, the research arm of the asset manager. “We are still close to the all-time high.”