Overview
- U.S. markets slumped on Thursday with the S&P 500 down about 1.2% and the Nasdaq down about 2.6%, a heavy tech-led decline that was the indexes' worst session in months.
- Semiconductor and chip-equipment names led losses, with steep drops in firms such as Lam Research, KLA, AMD and Intel as investors punished companies seen as most exposed to costly AI buildouts.
- Investors moved into perceived safer assets, driving U.S. Treasury yields sharply lower and pushing the 10-year yield below the 5% threshold after a roughly 15–19 basis-point fall.
- Brent crude surged above $110–$114 a barrel after fresh Houthi attacks raised supply fears, which boosted safe-haven flows into the Japanese yen and helped transmit losses to Asian markets.
- Even with recent earnings beats, firms signaled bigger near-term spending or financing needs, a development that tightens the cost of capital, raises questions about future capex and could alter expectations for Fed policy.