Updated
Updated · Yahoo Finance · Oct 8
Nasdaq Tumbles 1.6% as Chip Sell-Off Deepens and Oil Holds Above $103
Updated
Updated · Yahoo Finance · Oct 8

Nasdaq Tumbles 1.6% as Chip Sell-Off Deepens and Oil Holds Above $103

3 articles · Updated · Yahoo Finance · Oct 8

Summary

  • US stocks retreated Thursday, with the Nasdaq down 1.6%, the S&P 500 off 0.7% and the Dow slipping 0.1% as tech shares led the decline.
  • A Financial Times report saying OpenAI's annualized revenue was $20 billion below prior estimates hit AI-linked chip names, sending the SOX index down as much as 4% and dragging Nvidia, Micron and Intel lower.
  • Oil also pressured sentiment: Brent stayed above $103 a barrel and WTI above $91 even after easing when President Trump said the US would not attack Iran before the midterm elections.
  • Bond markets added to the strain, with the 10-year Treasury yield near 5.29% and the 30-year at 5.67%, tightening financial conditions despite jobless claims dipping to 197,000.
  • Investors are now turning to third-quarter earnings, with FactSet estimating S&P 500 profit growth of 29.5%, which would mark a third straight quarter above 25%.

Insights

With $3.3 trillion wiped from chip stocks, is the AI revolution facing a temporary glitch or a catastrophic reality check?
As oil surges and Treasury yields top 5%, can resilient corporate earnings truly prevent a broader market collapse?
PepsiCo is raising prices by 15% amid inflation fears; will consumer loyalty hold, or is a massive spending strike imminent?