Tech-heavy indexes slip as chip makers tumble and oil prices surge
The Nasdaq fell the most among U.S. benchmarks after chip makers dropped on news that OpenAI’s revenue outlook was lower than expected, while oil prices rose on Middle-East tensions.
The Nasdaq Composite recorded a 1.25% decline, the sharpest drop of the major U.S. indexes, after chipmakers fell 3.4% on one outlet's story that OpenAI’s annualised revenues were $20 billion below its prior guidance. The S&P 500 lost 0.47%, while the Dow Jones Industrial Average edged up 0.10%. Energy stocks led gains as front-month WTI and Brent crude rose 3.6% and 4.1% respectively, driven by shipping attacks in the Strait of Hormuz and hurricane-related cuts in U.S. production.
Analysts noted the market is awaiting the upcoming third-quarter earnings season and reacting to the ongoing Iran conflict. Federal Reserve expectations remain for unchanged rates this month, with a 69.2% chance of a December hike, mirroring the European Central Bank’s stance. Notable moves included declines for Broadcom, Oracle, Samsung Electronics, and Micron, while PepsiCo rose on cost-cutting plans and Palantir gained after a Goldman Sachs upgrade.
Why it matters
The slide highlights how AI revenue doubts and geopolitical oil shocks are influencing U.S. stock markets.
How this story developed
- Sep 21 30-year U.S. Treasury Yield Hits 2002 High Amid Widening Debt Sell-off
- Sep 30 Japanese equities rose alongside broader Asian stocks while markets awaited key US inflation figures that could steer interest-rate policy.
- Oct 2 South Korean equities opened slightly lower on Friday, with the KOSPI down about 0.15% despite gains on Wall Street.
- Oct 7 Nasdaq closed at a record high and Japan lifted its 10‑year bond coupon to 3.1%.
- Oct 7 The Treasury announced plans to sell a $39 billion block of 10‑year notes.
- Oct 8 The market recorded a third straight day of losses.
In this story
Related stories
21 in this thread