Amazon and Intel earnings trigger sharp decline in technology stock futures

Nasdaq futures dropped more than 2% on Friday after weak earnings news from Amazon and Intel. Amazon shares fell around 6% to 7% before markets opened. The company spent heavily in the third quarter and plans to spend even more next year on artificial intelligence technology. Intel shares fell 25% before trading began. Intel warned that it is losing cash this year because PC sales are slow and production costs are high. Together, the two companies could lose around $300 billion in total market value. Other technology stocks also fell. Nvidia dropped 2.5%, AMD fell 7%, and Broadcom lost about 4%. Investors are increasingly worried that the huge costs of building AI systems will not produce enough profit.