Huo Xing Finance reports: On October 17, U.S. equities closed lower across the board on Friday, as concerns over AI investment returns, combined with a sharp surge in global oil prices, triggered further selling pressure on tech stocks. The Nasdaq Composite fell 2.15%, the Nasdaq 100 dropped 2.5%, and the S&P 500 declined 1.1%. For the week, the Nasdaq slid 4.48%, while the Dow rose 0.68%, marking the widest weekly performance gap between the two indices since July 2002. The AI supply chain was hit hardest by the sell-off. CoreWeave, a cloud computing provider, saw its stock plunge 12%, and its bond yields briefly surged above 15%, raising market concerns over the financing models and debt risks associated with AI data centers. The Philadelphia Semiconductor Index fell for the eighth consecutive trading day, setting a new record for the longest losing streak since 2008. The storage index dropped 6.28% in a single day, with SK Hynix ADR down over 6.5%, SanDisk down over 6.8%, Micron Technology down over 5.6%, and optical communications firm Coherent falling more than 7%. In energy markets, Brent crude rose over 3% intraday, settling near $110 per barrel, while WTI crude climbed 3.8% to $101.71, marking its seventh consecutive daily gain. The VIX volatility index briefly spiked above 22, the first time in four months. Meanwhile, the U.S. dollar index fell to its lowest level in over two weeks, and the offshore renminbi surged past 6.69, reaching its highest level since July 2022. On the macro front, U.S. Treasury yields edged slightly higher on Friday but declined for the week overall. Markets interpreted comments from Federal Reserve official Waller that economic conditions were in line with expectations as a signal that a pause in rate hikes could come in October. As major tech companies prepare to release earnings, investor focus is shifting from AI compute demand to whether massive capital expenditures will translate into profitability and whether high-cost financing will further weigh on industry valuations.
AI trading fears and oil prices drive U.S. market sell-off; semiconductor stocks fall for eighth consecutive day
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Summary
On October 17, the U.S. market declined as the Fear & Greed Index shifted toward fear, with tech stocks under pressure from concerns over AI trading and rising oil prices. The Nasdaq Composite fell 2.15%, the Nasdaq 100 dropped 2.5%, and the S&P 500 lost 1.1%. Trading volume surged as investors rushed to exit positions, with CoreWeave down 12%. The Philadelphia Semiconductor Index entered an eight-day losing streak—the longest since 2008. Energy prices rose, with Brent crude up 3% and WTI crude up 3.8%.
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