Overview
- U.S. equity indexes fell sharply on Thursday with the Nasdaq down about 2.6–2.9%, the S&P 500 off roughly 1.2%, and the Dow essentially flat, reflecting a broad sell-off in growth names.
- Weak quarterly reports from major tech firms, including Tesla and Meta, intensified doubts that heavy spending on AI infrastructure will translate into near-term profits and led investors to cut positions in richly valued AI-linked stocks.
- The Philadelphia Semiconductor Index plunged roughly 6–7% as chipmakers and equipment suppliers suffered outsized losses that amplified weakness across technology sectors.
- Oil futures jumped about 2–4% after renewed Middle East attacks and strike reports, which pushed investors into U.S. Treasuries and drove the 10-year yield down to around 4.95%, signaling higher market risk aversion.
- Volatility rose in individual names with Moderna plunging more than 20% on reports of a data leak and SpaceX reversing part of a recent rally, and upcoming reports from Alphabet, Microsoft and Amazon are now key near-term tests of the AI investment case.