Nasdaq Posts Its Worst Month Since March 2025 as AI Spending Worries Grow

The Nasdaq ended October with its biggest monthly decline since March 2025, as tech investors reacted to AI spending outlooks from Google and Microsoft that came in below expectations.

Sentiment toward artificial-intelligence stocks briefly improved after Anthropic's IPO filing, but the lift faded as worries about slower AI investment returned. The Dow, helped by healthcare shares, gained nearly 2% over the same month.

The split highlights a rotation away from richly valued growth shares toward more defensive sectors, a shift that has implicated investors with heavy technology exposure.