U.S. stocks retreated on Thursday as names in the artificial intelligence trade came under pressure yet again amid worries around eye-watering valuations.
The Dow Jones Industrials dished off 202.54 points to 47,117.41.
The S&P 500 erased 30.78 points to open at 6,765.51.
The NASDAQ shed 249.33 points to 23,258.57.
During the session, AI stocks remained in focus for those on Wall Street. Qualcomm shed 2%, even after the chipmaker posted better-than-expected quarterly results.
Advanced Micro Devices, a standout name in the prior day, declined 5%, while Palantir Technologies and Oracle dipped 2% and 3%, respectively. Shares of AI darling Nvidia and fellow “Magnificent Seven” name Meta Platforms slid as well.
However, Marvell Technology was a winner, with shares moving more than 1% higher following a report that Softbank had thought about a potential takeover of the chipmaker.
Equities linked to the AI space had begun rebounding on Wednesday from valuation concerns that swirled earlier this week, serving as a potential boon for the major indexes.
AMD closed more than 2% higher in the previous session after the semiconductor company reported better-than-expected third-quarter results. The performance pulled up some other AI stocks alongside it, including Broadcom and Micron Technology, which jumped 2% and 9% on the day, respectively. Oracle also recouped some recent losses during the session.
Thursday’s pullback was exacerbated by concerns about the state of the labor market, as October saw a significant number of layoff announcements. Job cuts for the month totaled 153,074, marking an increase of 183% from September and 175% from the year-ago period, according to Challenger, Gray & Christmas.
Prices for the 10-year Treasury gained Thursday, weighing yields to 4.10% from Wednesday’s 4.16%. Treasury prices and yields move in opposite directions.
Oil prices faded 42 cents to $59.18 U.S. a barrel.
Gold prices picked up $6.10 to $3,999 U.S. an ounce.
