TLDR
- The Nasdaq fell 2.6% on Thursday as AI trade worries returned after Tesla and Meta earnings.
- Meta dropped nearly 7% and CoreWeave sank 10%, while Blackstone climbed 8%.
- Brent crude rose to $113 a barrel after reports of possible renewed attacks on Iran.
- Tech steadied slightly on Friday, but the Dow fell 1.2%, or 653 points.
- Alphabet, Amazon, and Microsoft report earnings next week, along with a Federal Reserve rate decision.
US stocks fell on Thursday as worries about the AI trade returned. Tech shares led the drop after earnings from Tesla and Meta.
The S&P 500 fell more than 1%, and the Nasdaq Composite lost 2.6%. The Dow Jones Industrial Average was little changed.
Semiconductor stocks dropped, reversing gains from Wednesday. Investors moved into bonds, which pushed Treasury yields lower.
Company moves on Thursday
Meta shares fell nearly 7% as investors weighed quarterly results. The company also announced a 2-for-1 stock split.
Tesla shares were volatile after an earnings beat. Investors weighed lower capital spending in 2026 against higher spending in 2027 and 2028.
That later spending covers Optimus, Cybercab, and Terafab. Tesla’s results did not settle investor concerns about costs.
CoreWeave sank 10% as worries about the cost of capital returned. The concerns centered on debt-heavy balance sheets.
SpaceX stock fell and gave back more than half of its gain from Wednesday’s earnings. Blackstone climbed 8% after giving an upbeat outlook for upcoming investment sales.
Blackstone had posted weaker third quarter earnings because of elevated borrowing costs. Its outlook for sales drew the focus of investors.
Oil prices and jobs data
A report said the US and Israel are preparing for renewed attacks on Iran after the US midterm elections. Brent crude rose to $113 a barrel, and West Texas Intermediate climbed to $100.
A deadly attack at a Saudi Arabian airport and oil field also pushed energy prices up. Oil reached a five-month high.
Jobless claims fell to 194,000 last week. That was the fewest in three months.
On Friday, the tech selloff took a breather. The S&P 500 slid 0.5%, and the Nasdaq Composite dropped 0.2%.
The Dow fell 1.2%, or 653 points, after closing flat on Thursday. It still posted a positive weekly return, while the other two major indexes did not.
The PHLX Semiconductor Index gained 0.44% and backed off its 200-day moving average. 22V Research said the more large AI spenders need credit markets, the more expensive it will be for others to finance the buildout.
Next week, Alphabet, Amazon, and Microsoft will report earnings. The Federal Reserve will also announce its October interest rate decision.
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