Dow Rises 533 Points as Investors Flee AI Trade on Inflation, Overspending Fears
Updated
Updated · CNBC · Oct 14
Dow Rises 533 Points as Investors Flee AI Trade on Inflation, Overspending Fears
2 articles · Updated · CNBC · Oct 14
Summary
The Dow gained 533 points, or 1%, while the S&P 500 rose 0.4% and the Nasdaq added just 0.1%, as money rotated out of richly valued tech and into blue-chip value stocks.
AI-related pressure drove that split: Seagate, Western Digital and SK Hynix extended losses on memory-glut fears tied to rising Chinese competition, while traders also questioned whether AI revenue growth justifies chipmakers' lofty valuations.
CoreWeave rebounded 3% after a 15% plunge the prior session, and Micron turned higher, but the broader message from investors was to reduce concentration in AI as 5% Treasury yields offer a stronger alternative.
September producer prices rose 1.3% from August and 6.3% year over year—the biggest gains since 2022—reinforcing Wednesday's hot CPI data and concerns the Federal Reserve may tighten policy again before year-end.