AI-driven market rally stalls as investors await earnings from Meta and chip makers
Shares tied to artificial intelligence have dipped, shifting market focus to upcoming quarterly reports from Meta, semiconductor firms and other tech leaders.
AI-centric stocks have experienced a noticeable slump, prompting questions about the strength of the four-year-old AI-driven bull market. Semiconductor and hardware companies like Dell Technologies saw steep declines, while the AI cloud provider CoreWeave, burdened with roughly $50 billion of debt, saw its shares tumble. Market strategists describe the environment as jittery, with concerns that financing the AI build-out could strain profitability.
The upcoming earnings season, highlighted by Meta Platforms and chipmakers Lam Research and Texas Instruments, will be a key test of whether hyperscalers can generate returns that outpace their massive capex. Despite the tech weakness, the S&P 500 is only about 1% off its record high, and other sectors are beginning to compensate. Analysts also watch broader factors such as rising Treasury yields and potential further Federal Reserve rate hikes.
Why it matters
Earnings will reveal if AI spending is delivering profits, shaping market direction and investor confidence.
How this story developed
- Oct 2 Seoul market slips modestly as US stocks close higher
- Oct 8 The market recorded a third straight day of losses.
- Oct 13 South Korean equities fell over 3% as Asian markets slipped, mirroring a 2.7% drop in a US semiconductor index and fading AI optimism.
- Oct 13 The decline continued a multi‑day slide in the index.
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 15 KOSPI dropped over 7% and triggered a 20‑minute circuit‑breaker halt and sell‑side sidecar activation.
- Oct 16 CoreWeave rebounded 6% after a steep decline, lifting broader semiconductor shares.
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