Nasdaq falls nearly 3% on Friday and ends October lower as investors question AI spending
The US sell-off came days before the Bank of England's 5 November decision. The Independent reports that traders expect the first UK rate rise since 2023.
By Daily Oracles News Team1 min read
US technology shares closed the week sharply lower on Friday. The Nasdaq Composite lost nearly 3%, its biggest one-day percentage fall since June, and the S&P 500 dropped 1.8% to about 7,580. The Dow Jones Industrial Average gave up about 1.1%.
The S&P 500 and the Nasdaq both ended October with a loss. The Dow finished the month higher.
The question behind the sale
Investors are weighing the cost of artificial intelligence. Large technology groups are committing hundreds of billions of dollars to chips, servers and data centres, and the market is asking how quickly that money will come back as profit.
Why Thursday matters here
UK borrowers have their own date to watch. The Bank of England announces its rate decision on Thursday 5 November, and The Independent reports that traders widely expect a rise from 3.75% to 4%. That would be the Bank's first increase since August 2023. Consumer price inflation was 3.5% in September, against a 2% target, and the Monetary Policy Committee will publish updated forecasts alongside the decision.
