TLDR
- The S&P 500 fell 1.2% and the Nasdaq Composite slid 2.6% on Thursday as AI trade worries hit tech shares.
- Nvidia fell 4.4%, Alphabet dropped 3.2% and Advanced Micro Devices declined 8.1%.
- Meta fell nearly 7% and CoreWeave sank 10%, while Blackstone rose 8%.
- Brent crude jumped 4% to $113.17 and the 10-year Treasury yield fell to 4.961%.
- Futures were mixed early Friday, with Dow futures down 0.23% and Nasdaq-100 futures up 0.25%.
US stocks fell on Thursday as worries about the artificial intelligence trade hit tech shares. The S&P 500 dropped 1.2% and the Nasdaq Composite slid 2.6%.
The S&P 500 had its worst session since July. The Nasdaq had its worst day since June. The Dow Jones Industrial Average closed marginally higher.
The tech sector fell about 3% on the day. Nvidia dropped 4.4%, Alphabet fell 3.2% and Advanced Micro Devices declined 8.1%.
What Moved Individual Stocks
Meta shares fell nearly 7% as investors weighed quarterly results and a 2-for-1 stock split announcement.
CoreWeave sank 10% as worries over the cost of capital returned. The neocloud provider carries a heavy debt load.
Tesla shares were volatile after an earnings beat. Investors weighed lower 2026 capital spending against higher spending in 2027 and 2028 on Optimus, Cybercab and Terafab.
SpaceX stock fell and gave back more than half of Wednesday’s post-earnings gain.
Blackstone climbed 8% after the firm gave an upbeat outlook for upcoming investment sales. The firm had posted weaker third quarter earnings because of elevated borrowing costs.
Comments on AI Spending and Markets
Nvidia CEO Jensen Huang told CNBC on Thursday that capital in the AI buildout is becoming scarce. “The demand [for] the capital is much greater than the availability of the capital,” he said.
Ed Yardeni of Yardeni Research called the AI trade a “bubble” on Thursday. He said he does not think it will burst and create problems for the economy.
Investors moved into bonds, and Treasury yields fell. The 10-year yield slid 18.5 basis points to 4.961%, and the 30-year yield fell 15 basis points.
Oil prices rose after a report that the US and Israel are preparing renewed attacks on Iran after the US midterm elections. Brent crude jumped 4% to $113.17, its highest settle since May.
West Texas Intermediate crude climbed to $100. A deadly attack at a Saudi Arabian airport and oil field also pushed energy prices up.
Jobless claims fell to 194,000 last week, the fewest in three months. Layoffs remain low.
For the week, the S&P 500 is up less than 0.1%, while the Nasdaq is down 0.5%. The Dow is on track for a 1.7% gain.
In early Friday trading, S&P 500 futures were flat and Dow futures were down 120 points, or 0.23%. Nasdaq-100 futures were up 0.25%. Traders will watch the final University of Michigan consumer sentiment reading later in the day.
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