AI stock slump weighs on US markets and economic outlook

US technology shares fell sharply, with the tech sector dropping 4.2 per cent on Friday and pulling the S&P 500 down 1.8 per cent. The tech sector slid 6.8 per cent in October, its steepest monthly fall since March 2025, though nine of the index's 11 sectors gained and the benchmark ended the month down less than 1 per cent. Disappointing results from Alphabet, Amazon and Intel added to the pressure on the AI trade. BofA Global Research economists call a sustained correction in AI stocks a major risk to the global economy. Tech makes up 38 per cent of the S&P 500.