Chip stocks plunge 6.7% as AI spending doubts send the Nasdaq to its worst day since June
The Nasdaq fell 2.6% on Thursday and the Philadelphia semiconductor index lost 6.7%, its biggest one-day drop since June, as big-tech earnings revived worries about the cost of the AI race. The Dow ended almost flat.
US stocks fell sharply on Thursday, 22 October. The Nasdaq Composite lost 2.6% to 26,008.86, its steepest daily drop since early June, and the S&P 500 fell 1.21% to 7,663.43, Reuters reported. The Dow Jones Industrial Average edged up 0.02%.
Chipmakers hit hardest
The Philadelphia SE Semiconductor Index plunged 6.7%, its biggest one-day fall since 23 June. According to Reuters, the index is now more than 26% below its June record, though still up 51.5% this year. Nvidia fell 4.4%, AMD 8.1% and Micron 6.3%; Intel, Sandisk and Marvell each dropped more than 8%.
Why
Reuters linked the selloff to fresh fears about the AI spending race after quarterly reports from large tech companies. Oil prices rose, while US Treasury yields fell sharply.
Winners
Not everything fell: Procter & Gamble rose 5.6% after beating estimates, Lockheed Martin gained 7% after raising its annual forecast, and Spotify jumped 11.1% on an upbeat profit outlook. Of the 111 S&P 500 companies that have reported, 83% beat analyst expectations, according to LSEG data cited by Reuters.
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