Why Did the US Stock Market Crash? $2 Trillion Wiped Out

Wall Street's October selloff erased roughly $2 trillion from Nasdaq-100 market value as investors questioned whether AI returns can justify heavy spending. Disappointing tech earnings, slowing-growth warnings, elevated valuations, rising inflation and expectations of a Fed rate increase in December intensified pressure, according to BeInCrypto. Intel plunged nearly 29% Friday after a factory disruption and weak forecast; Reddit fell more than 36% for the week as AI-generated search answers cut traffic, while Alphabet lost more than $500 billion in market value Thursday. Amazon expects about $220 billion in capital expenditure this year. The article describes the selloff as an AI valuation correction, not conclusive evidence of a bursting bubble; upcoming AMD and Nvidia results could clarify demand.