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.
Bank of America
3 stories since 29 October 2026, newest first
2 November 2026
1 November 2026
Bank of America analyst Koji Ikeda raised his price target on Datadog to $335 from $305 and kept a buy rating. He estimates the company's revenue growth for the third quarter of fiscal 2026 at 28.7%, slightly below the consensus of 29.1%. Datadog is scheduled to report its third-quarter results on 04 Nov. Ikeda cites AI as a tailwind for infrastructure software demand and an expanding observability market, while flagging concentration risk tied to large customers.
29 October 2026
Microsoft announced a reduction of its full‑year capital expenditure target to $170 billion, down from $175 billion, while reporting $18.6 billion in free cash flow that beat expectations. Alphabet disclosed a negative free cash flow of over $9 billion for the third quarter, causing its shares to tumble between 8% and 10% in after‑hours trading. In the same period, Azure revenue grew 48% and Google Cloud revenue topped $30 billion, surpassing forecasts. Both firms face AI‑related spending pressures, with Alphabet revealing $98.5 billion in contingent AI commitments.