Stocks fall as AI enthusiasm wavers
The S&P 500 broke its seven-day winning streak. The Nasdaq 100 and Russell 2000 also fell.
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.
