Dow Sinks 1.23 Percent as AI Fears, USD117 Oil Rattle Wall Street
(MENAFN) Wall Street ended the week deep in the red Friday as a tech-sector sell-off fueled by anxiety over artificial intelligence spending spread across the market, while Middle East tensions pushed crude prices higher.
The Dow Jones Industrial Average shed 652.82 points, or 1.23%, to close at 52,215.16. The S&P 500 slid 0.52%, or 39.75 points, to 7,623.68, and the Nasdaq Composite slipped 0.21%, or 53.52 points, to finish at 25,955.34. The Volatility Index (VIX), widely known as the market’s “fear index,” climbed 2.21% to 19.45.
Stocks swung wildly this week over corporate AI investment concerns, and the pressure broadened to other sectors in Friday’s session. Strong results from SpaceX and Super Micro Computer earlier in the week had lifted optimism about AI growth, but earnings from Tesla and Meta revived worries about spending in the industry. Investors now turn to next week’s reports from tech heavyweights Microsoft, Alphabet and Amazon.
Telecom stocks took a hit on reports that SpaceX is in talks with cellular infrastructure companies to build a nationwide wireless network in the US. Fears of intensifying competition sent AT&T down 7.96%, T-Mobile down 7.71% and Verizon down 1.18%. SpaceX shares gained 1.89%.
American Express tumbled 3.62% after announcing it will cut roughly 5 percent of its global workforce, even as third-quarter revenue and profit rose.
Oil kept climbing on escalating Middle East tensions and energy supply worries, with Brent crude rising above $117 a barrel. The surge has sharpened inflation concerns ahead of the Federal Reserve’s policy meeting on October 27–28, though markets still expect the central bank to hold interest rates steady.
In bond markets, the 10-year US Treasury yield hovered at 4.99%. It had dipped below 5% Thursday for the first time in about a month. On the data front, the University of Michigan’s consumer sentiment index was revised up to 48 for October, but it remains at its lowest level in five months.
European Markets Close Lower
Most European markets finished lower, with Italy the exception. The pan-European Stoxx Europe 600 fell 0.31% to 635.77.
The UK’s FTSE 100 lost 0.32% to 10,690.36, Germany’s DAX 40 dropped 0.75% to 25,181.65, and France’s CAC 40 declined 0.36% to 7,782.82. Italy’s FTSE MIB slipped 0.36% to 48,558.86, while Spain’s IBEX 35 gained 0.4% to 18,989.80.
The Dow Jones Industrial Average shed 652.82 points, or 1.23%, to close at 52,215.16. The S&P 500 slid 0.52%, or 39.75 points, to 7,623.68, and the Nasdaq Composite slipped 0.21%, or 53.52 points, to finish at 25,955.34. The Volatility Index (VIX), widely known as the market’s “fear index,” climbed 2.21% to 19.45.
Stocks swung wildly this week over corporate AI investment concerns, and the pressure broadened to other sectors in Friday’s session. Strong results from SpaceX and Super Micro Computer earlier in the week had lifted optimism about AI growth, but earnings from Tesla and Meta revived worries about spending in the industry. Investors now turn to next week’s reports from tech heavyweights Microsoft, Alphabet and Amazon.
Telecom stocks took a hit on reports that SpaceX is in talks with cellular infrastructure companies to build a nationwide wireless network in the US. Fears of intensifying competition sent AT&T down 7.96%, T-Mobile down 7.71% and Verizon down 1.18%. SpaceX shares gained 1.89%.
American Express tumbled 3.62% after announcing it will cut roughly 5 percent of its global workforce, even as third-quarter revenue and profit rose.
Oil kept climbing on escalating Middle East tensions and energy supply worries, with Brent crude rising above $117 a barrel. The surge has sharpened inflation concerns ahead of the Federal Reserve’s policy meeting on October 27–28, though markets still expect the central bank to hold interest rates steady.
In bond markets, the 10-year US Treasury yield hovered at 4.99%. It had dipped below 5% Thursday for the first time in about a month. On the data front, the University of Michigan’s consumer sentiment index was revised up to 48 for October, but it remains at its lowest level in five months.
European Markets Close Lower
Most European markets finished lower, with Italy the exception. The pan-European Stoxx Europe 600 fell 0.31% to 635.77.
The UK’s FTSE 100 lost 0.32% to 10,690.36, Germany’s DAX 40 dropped 0.75% to 25,181.65, and France’s CAC 40 declined 0.36% to 7,782.82. Italy’s FTSE MIB slipped 0.36% to 48,558.86, while Spain’s IBEX 35 gained 0.4% to 18,989.80.
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