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Wall Street Falls as Tech Sells Off on AI Valuation Fears

With official data curtailed by a prolonged U.S. shutdown, investors leaned on private layoff figures.

Overview

  • The Nasdaq fell 1.9%, the S&P 500 lost 1.1% and the Dow slipped 0.84% on Thursday.
  • AI-linked names led losses as Nvidia dropped 3.65%, Palantir 6.8% and AMD 7.3%, while the Philadelphia Semiconductor Index fell 2.39% and Qualcomm slid after warning of possible lower Samsung orders.
  • The VIX rose 8.4% to 19.52, signaling increased risk aversion after a brief midweek pause.
  • Challenger, Gray & Christmas reported 153,074 announced job cuts in October, the highest October since 2003, as markets relied on private indicators.
  • Airline shares weakened after the FAA ordered a 10% traffic reduction at 40 U.S. airports to ease strain on unpaid controllers during the shutdown.