Dow Jones| Nasdaq | US Stock Market Today | Live: Nasdaq futures slide 1% as AI selloff deepens amid debt concerns
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Dow Jones Today Live Updates:US stocks edge lower amid AI selloff.
Dow Jones Today | US Stock Market Live: The Nasdaq fell to near one-month lows on Thursday as fears of a hit to artificial-intelligence investments from higher interest rates deepened a rout in AI-linked stocks, while fresh data confirmed price pressures building in the US economy.
The Dow Jones Industrial Average rose 266.74 points, or 0.52%, to 51,888.22, the S&P 500 lost 33.35 points, or 0.43%, to 7,685.59, and the Nasdaq Composite lost 329.86 points, or 1.24%, to 26,363.01.
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US semiconductor stocks were set to lose $2 trillion in market value on Thursday in the steep selloff since last week, driven by rising bets of an interest-rate hike and concerns over the cost of the AI buildout. The Philadelphia SE Semiconductor index was last down 3.3%, adding to a $1.64 trillion wipeout over the past six sessions.
The dollar slipped from an 18-month peak on Thursday as a sharp drop in Treasury yields weighed on the greenback, while cautious remarks from Federal Reserve officials tempered October hike expectations despite hot inflation data.
The dollar index, which measures the US currency against a basket of peers, was last down 0.2% on the day at 102.03, having hit an 18-month high on Wednesday after US inflation figures came in stronger than expected.
The levels the benchmark 10-year US Treasury yield has touched this year are not unprecedented, the CEO of the oldest US bank told Reuters, as a bruising selloff in government debt lifted yields to multi-decade highs.
The 10-year US Treasury yield, a yardstick for global borrowing costs and asset prices, posted its sharpest rise since 1994 in the July-September period.
US retail sales increased more than expected in September, boosted by higher gasoline prices, but spending elsewhere was moderate, which could temper economists' expectations for another quarter of robust consumer spending growth.
Retail sales rose 0.8% last month after an upwardly revised 1.3% jump in August, the Commerce Department's Census Bureau said on Thursday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, rising 0.3%.
CoreWeave, Oracle and other chip, cloud and hyperscaler stocks are poised to extend their selloff, with Nvidia falling 1.8%, Micron Technology dropping 3.7% and AMD losing 2.3%. Jefferies economist Mohit Kumar warns that a slowdown in AI infrastructure spending could sharply weaken US growth expectations, although he expects the earnings season to show that corporate demand remains robust.
Shares of Rocket Lab dropped 9.7% after the space company said the inaugural launch of its new, larger Neutron rocket was delayed until next year.
Markets turn to US producer-price data due at 8:30 a.m. ET for fresh signals on factory-gate inflation, with September retail sales, weekly jobless claims and several business surveys also scheduled for release. Traders see a 27% chance of a Federal Reserve rate hike later this month, up from 20% a week ago, while the probability of a 25-basis-point increase in December stands at 67%, according to CME FedWatch.
Sentiment toward AI stocks weakens on Thursday after TSMC, the world’s largest advanced-chip manufacturer, warns of macroeconomic uncertainty in 2027 despite posting a sixth consecutive record quarterly profit. A 45% quarter-on-quarter revenue surge at Anthropic fails to lift investor confidence, while heavily indebted data-centre operator CoreWeave drops another 6.3% in premarket trading after tumbling 15% on Wednesday.
US stock futures were mixed early Thursday, with Nasdaq 100 futures falling 1.1% as pressure on technology shares persisted after hotter-than-expected inflation data drove the Nasdaq and S&P 500 to their biggest one-day declines since July. At 5:50 a.m. ET, Dow futures rose 165 points, or 0.32%, while S&P 500 futures fell 21 points, or 0.27%, and Nasdaq 100 futures dropped 331.5 points, or 1.1%.