Wall Street closes sharply lower as AI cash burn fears spark tech selloff – as it happened
All three major US stock indexes slumped on Friday, with the tech-heavy Nasdaq suffering the steepest loss.
The tech rout was sparked by disappointing quarterly results from Intel and Amazon released late on Thursday.
Chip stocks veered sharply lower, dragging the Philadelphia SE Semiconductor Index to a monthly loss.
All three main equity indexes closed lower on the week. The S+P 500 and the Nasdaq logged monthly losses, while the Dow exited October with a gain.
According to preliminary data, the S+P 500 lost 139.30 points, or 1.80%, to end at 7,580.21 points, while the Nasdaq Composite lost 747.73 points, or 2.84%, to 25,440.68. The Dow Jones Industrial Average fell 571.98 points, or 1.09%, to 51,770.58.
Third-quarter earnings season has passed the halfway mark, with 299 companies in the S+P 500 having reported. Of those, 82% have beaten consensus expectations, according to LSEG data.
Analysts now expect third-quarter S+P 500 earnings growth of 31.6%, year-on-year, per LSEG.
Oil supermajors Exxon Mobil and Chevron both beat quarterly profit expectations, benefiting from soaring profit margins as a result of energy supply disruptions arising from the US-Israeli war with Iran and Russia’s war in Ukraine.
Starbucks dipped after the coffee chain forecast an annual revenue decline due to its divestiture of its Chinese business.
Cryptocurrency-related firms Coinbase, Strategy, and Robinhood fell in the wake of reports that hackers stole $6.3bn from Binance, the world’s biggest cryptocurrency exchange.
Source: The Guardian. Summary reproduced for informational purposes.
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