Intel plunged 28.6% for its worst drop since 1974 — and the AI sell-off gave the S&P 500 its worst day since June

A sell-off for tech stocks got even worse Friday on worries that Wall Street’s frenzy around artificial-intelligence technology sent prices too high.

The S&P 500 tumbled 1.8% for its worst day since June, and it closed out a third straight losing week. The weakness for technology stocks dragged the Nasdaq composite down a market-leading 2.9%, while the Dow Jones Industrial Average dropped 572 points, or 1.1%.

The U.S. stock market remains only 3.1% below its all-time high, which has boosted the value of workers’ 401(k) accounts, but it’s become increasingly shaky as Tuesday’s midterm elections in the United States approach. Worries about AI in general have already become a concern for voters across political parties, and President Donald Trump has historically used the stock market’s performance as a measure of his own success.

Intel’s stock led the way lower and plunged 28.6% for its worst drop since 1974. The chipmaker gave a forecast for profit in the final three months of this year that fell short of analysts’ expectations, as CEO Lip-Bu Tan said the personal-computer industry continues to feel pressure. The drop came even though Intel reported a stronger profit for the latest quarter than analysts expected.

Amazon fell 1.4% after reporting a weaker profit for the summer than analysts expected. Potentially more concerning for investors was Amazon’s reporting that it burned through $42.4........

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