Intel plunges 28.6% as weak outlook hits US technology shares

Intel shares plunged 28.6% on Friday after the chipmaker forecast a weak current quarter, blaming a slowdown in the PC market. The sell-off helped drag technology stocks and Wall Street’s Nasdaq index lower.

Other chipmakers also fell, with Nvidia, AMD, Broadcom, Sandisk, Qualcomm and Micron Technology down by more than 13%, according to ANP.

The Nasdaq dropped nearly 3% to 25,437 points. The S&P 500 fell 1.8% to 7,580.07, while the Dow Jones Industrial Average, which is less exposed to technology shares, declined 1.1% to 51,770.31.

Amazon also slipped after reporting quarterly revenue and profit below expectations and forecasting higher capital investment next year. Reddit fell more than 29% after issuing a disappointing sales outlook for the current quarter.

Elsewhere, oil prices rose, with Brent up 2.4% to more than $117 a barrel and US crude gaining 1% to $103. Chevron and ExxonMobil shares advanced as both companies reported sharply higher quarterly profits.