European Stocks Dip on AI Spending Fears

European shares fell Friday, Oct. 30, 2026, after Amazon and Intel reported third-quarter earnings that disappointed investors. Amazon kept its 2026 capital expenditure forecast at $220 billion and posted negative free cash flow for a second straight quarter. Amazon shares fell 7% in premarket trading. Intel shares fell nearly 25% after it forecast a prolonged slowdown in PC sales. Alphabet shares had closed 13% lower Thursday, its worst single-day drop in history. ASML dropped more than 5%. The STOXX 600 slipped about 0.25% yet stayed on track for its strongest month since June. At 1043 GMT the FTSE 100 was up 0.24% to 10,747.70, the DAX down 0.59% to 25,887.19, the CAC 40 up 0.10% to 7,978.02, the FTSE MIB down 0.75% to 49,628.45 and the IBEX 35 down 0.50% to 18,762.76. Matt Orton, chief market strategist at Raymond James, told CNBC's Squawk Box Europe he does not think this is a moment of reckoning but a moment where investors should take a long thought about crowded positioning even though the fundamentals are strong. He said while the here and now can be painful the fundamentals by and large still remain in place especially across the AI capex beneficiary part of the market, and he is generally okay with these companies turning free cash flow negative for a temporary period. No contested facts appear in the record. Ukraine struck an oil refinery in Russia early Friday, ending a two-week pause. Rio Tinto paused operations at its Oyu Tolgoi copper mine.