Head Coach Mike Ditka of the Chicago Bears looks on from the sidelines against the New England Patriots in Super Bowl XX

A bearish day: the S&P 500 fumbles its winning streak (Focus on Sport/Getty Images)

Stocks fall as AI enthusiasm wavers

The S&P 500 broke its seven-day winning streak. The Nasdaq 100 and Russell 2000 also fell.

10/7/25 3:03PM

The S&P 500, Nasdaq 100, and Russell 2000 all retreated from yesterday’s highs. It was a defense-on day, as utilities and consumer staples were the best-performing sector ETFs. Amazon was the only Magnificent 7 company to finish higher.

Oracle tumbled after a report that it’s lost nearly $100 million from renting out access to Nvidia’s Blackwell chips, triggering a broad-based retreat in chip stocks. Memory chip specialist Micron and foundry giant TSMC dipped. Neocloud companies Nebius and CoreWeave, disk drive sellers Western Digital and Seagate Technology Holdings, and zero-revenue nuclear energy firm Oklo were among the stocks selling off on the news.

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Stocks that moved higher:

Trilogy Metals, a Canadian minerals exploration company, soared after the US government announced it has taken a 10% stake in the company.
Advanced Micro Devices continued yesterday’s rally after getting more than 20 price target hikes across Wall Street following its deal with OpenAI.
IREN advanced after the bitcoin miner and AI compute provider issued a press release announcing new multiyear deals with “leading AI clients” to put its Nvidia GPUs to work on their behalf.
Rigetti Computing climbed higher after Benchmark analyst David Williams more than doubled his price target on shares of the quantum computing company to $50 from $20.
AppLovin rebounded after getting thwacked late in the session yesterday following a report by Bloomberg that the SEC is investigating the ad tech company’s data collection practices.
Oscar Health rose after President Trump suggested yesterday that he is open to extending Affordable Care Act subsidies as part of a funding bill to reopen the government.
IBM moved higher after announcing that the company is partnering with Anthropic to integrate its AI model Claude into IBM’s software offerings.
Constellation Brands ticked up after reporting earnings results that beat Wall Street expectations yesterday.
Financial market operator Intercontinental Exchange announced it would invest up to $2 billion in prediction markets company Polymarket amid growing signs that the prediction markets business is gaining traction, which sent shares of sports betting apps DraftKings and FanDuel parent company Flutter Entertainment lower.

Stocks that moved lower:

Tesla slipped after finally unveiled its new, cheaper Model Y, the more affordable car that the company has been promising — but failing to deliver — for years.
Lucid sank following weaker-than-expected Q3 vehicle deliveries and a lowered analyst outlook
AMC initially rose after announcing that its Taylor Swift viewing parties were “a record-setting, box office smash hit,” but finished the day in the red.

Luke Kawa8m

Nvidia spikes on report that the Trump administration is considering letting Nvidia sell its best Hopper chips to China

One big headline really can change price action.

Shares of Nvidia popped 2% after Bloomberg reported that the Trump administration is internally discussing the idea of letting Nvidia sell its H200 chips to China. These chips, unlike the H20, are not the nerfed versions that Nvidia designer specifically for sale to China, but rather, are its best chips from their Hopper generation, which preceded Blackwell.

Ahead of Nvidia’s earnings on Wednesday, this headline hit the wires:

*TRUMP: IF NVIDIA'S HUANG IS HAPPY, I'M HAPPY

Well, the CEO didn’t seem too thrilled by the market’s reaction to the chip designer’s Q3 results. Perhaps this will cheer him up.

Pharmaceutical Company Eli Lilly Headquarters

Eli Lilly jumps into the tech-dominated $1 trillion club

Lilly is crossing $1 trillion in market cap just as Wall Street is getting jittery over a potential AI bubble.

J. Edward Moreno2h

Max Knoblauch2h

Airlines climb on falling oil prices as the US pushes for a Russia-Ukraine peace deal

Oil prices fell on Friday, with West Texas Intermediate crude futures down more than 2% amid a US push for a peace plan between Russia and Ukraine. The US has reportedly pitched a deal that would see Ukraine cede land to Russia and agree to never join NATO.

As the market repeatedly shows: what’s bad for crude is good for airlines, which stand to benefit from lower fuel costs. Shares of major US carriers are up on oil’s price action, with Southwest Airlines up more than 5% and the rest of the big four airlines — American Airlines, Delta Air Lines, and United Airlines — up more than 3%.

IBM initiated at overweight by Oppenheimer analysts

IBM gets a Wall Street-high price target from Oppenheimer

Oppenheimer slapped a price target of $360 on the stock as it initiated coverage.

Matt Phillips2h

Luke Kawa3h

There’s a full-blown meltdown in the AI boom’s supporting cast of speculative, volatile stocks

Nvidia’s results weren’t good enough to help the chip designer, but the reaction has been so much worse for other parts of the AI trade. The meltdown in the AI boom’s supporting cast of more speculative, volatile stocks is deepening sharply on Friday:

Bitcoin miners turned data center providers Cipher Mining and IREN are in a world where the market seems to have soured on everything they’re associated with. Shares of both have tumbled more than 7% on the day.
Neoclouds CoreWeave and Nebius are both off about 5% or more. The former is now 66% off its record closing high, while the latter is in a 40% drawdown.
Nuclear energy firm Oklo is down 8%, and has lost over half its value since mid-October. Its trailing price-to-sales ratio remains aggressively unchanged through this rout (because it is a zero-revenues company).
The Bloom (Energy) is off the rose, with the fuel cell company off more than 40% from its peak. Shares of Bloom Energy are cratering amid bearish options activity, with its put/call ratio at a four-month high as of 10:55 a.m. ET.

The rollover in these speculative pockets of the market (as well as bitcoin!) starting in October seems to have presaged the current bout of pain for major US indexes.

To repeat myself, when the question of, “Oracle will be able to pay me back, right?” enters your mind, that’s probably not consistent with a world where smaller companies on the outskirts of the AI ecosystem can continuously be bid up to the moon.