Nasdaq falls 1.06% amid sell-off in AI company stocks — Channel NewsAsia
In the United States, the Nasdaq Composite index fell by 1.06% on October 15, to 26,409.80 points as of 9:50 a.m. Eastern Time. The decline came amid an intensifying sell-off in shares of companies linked to artificial intelligence, driven by investor concerns about the impact of rising interest rates on AI investment, Channel NewsAsia reports.
The S&P 500 index lost 0.42%, falling to 7,686.74 points. Meanwhile, the Dow Jones Industrial Average rose by 0.32%, to 51,785.06 points. The previous day, the S&P 500 and Nasdaq recorded their largest one-day declines since July after data showed U.S. consumer inflation was higher than expected.
Decline in technology companies
Shares of data center operator CoreWeave fell by 8.5% after dropping 15% in the previous session. Oracle shares declined slightly after losing nearly 9% the day before. The bonds of both companies also declined in value, while their yields rose to record levels.
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Among chipmakers, Nvidia shares lost 3.3%, Micron Technology fell 5%, and Advanced Micro Devices dropped 6.4%. The S&P 500 technology sector declined by 2%, becoming the biggest factor behind the broad index's fall. A cautious statement by Taiwanese chipmaker TSMC regarding 2027, in which the company cited macroeconomic uncertainty, also worsened market sentiment.
Inflation and shift to defensive assets
New data showed that U.S. producer prices in September recorded their biggest increase in four and a half years due to higher prices for goods and services. This was another signal of intensifying inflationary pressure beyond the energy sector.
Investors moved into defensive sectors: shares of healthcare companies and consumer staples producers each rose by more than 2%. The yield on 10-year U.S. Treasury bonds fell to a three-week low of 5.0725%. The CBOE Volatility Index, often called Wall Street's fear gauge, reached its highest level in two weeks.
