U.S. stock markets fell on Thursday, with concerns over escalating conflicts in the Middle East driving up crude oil futures and exacerbating inflation worries as midterm elections in the United States draw closer by less than two weeks. Meta tumbled sharply as investors digested the financial reports of that company and the latest batch of tech firms, looking for signs that massive AI expenditures are yielding returns.
The selling pressure was mainly concentrated on large tech stocks, with the Philadelphia Semiconductor Index ( SOX ) plummeting by 6.7%.
The Nasdaq 100 index fell 2.9%, recording its largest decline since the end of June.
The S&P 500 index fell by 1.2%, while the S&P 500 Equal Weight Index, which reflects the breadth of the market, rose by 0.8%.
Themis Trading LLC, a partner and co-head of stock trading, stated: "Today feels like a typical risk-aversion market day, and tech stocks are always the first to be hit. The rise in bonds also confirms this risk-aversion trend." Joseph Saluzzi
Large tech stocks that drove the U.S. stock market bull run suffered heavy losses. The quarterly earnings of companies such as Meta and Tesla were mixed, sparking concerns in the market that this sector has risen too much and too quickly since the end of March.
Investors have not completely withdrawn from the stock market; instead, they have shifted their investments to defensive sectors such as consumer staples and utilities.
WTI Crude oil rose by 2.2%, while the yield on 10-year U.S. Treasury bonds fell to 4.97%.
Due to the threat posed by Houthi militants, the United States ordered the evacuation of some diplomatic personnel and their families from Saudi Arabia.
Meta tumbled 7%, recording its largest decline since July, despite the company's performance exceeding expectations and an upward revision to its capital expenditure forecasts.
Tesla fell 3.1% after the electric vehicle manufacturer cut its spending plans.
Fanlin Group's performance guidance falling short of expectations put pressure on the entire chip equipment sector, overshadowing the positive news of Texas Instruments' results exceeding forecasts.
The European situation has also exacerbated market instability, with global investors selling off high-risk assets, and pressure on the French bond market has increased.
Blackstone's stock price rose by 8.4%, becoming one of the few bright spots. President Jon Gray refuted the claims made a few days ago by billionaire Ken Griffin that there was a bubble in artificial intelligence ( AI ).
As of the close, the S&P 500 index fell 1.2% to 7,663.43 points.
The Dow Jones Industrial Average remained virtually unchanged, at 52,867.98 points.
The Nasdaq Composite Index fell 2.6% to 2,6008.86 points.
The Nasdaq 100 index fell 2.9% to 2,8958.69 points.
The Russell 2000 Index rose by 0.1% to 2,784.026 points.
