Advertisment
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 cratered 502.92 points, or 1.1%, to 46,808.08.
The S&P 500 erased 86.93 points, or 1.3%, to reach noon EST at 6,709.36.
The NASDAQ shed 470.47 points, or 2%, to 23,032.11
AI stocks have moved unevenly since the start of November trading, and that trend continued during Thursday’s session. Qualcomm shed 4%, even after the chipmaker posted better-than-expected quarterly results.
Advanced Micro Devices, a standout name in the prior day, declined 7%, while Palantir Technologies and Oracle dipped 5% and 3%, respectively.
Shares of AI darling Nvidia and fellow “Magnificent Seven” name Meta Platforms slid as well.
Equities linked to the AI space rebounded 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. Oracle also recouped some recent losses.
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 4.08% from Wednesday’s 4.16%. Treasury prices and yields move in opposite directions.
Oil prices faded 59 cents to $59.01 U.S. a barrel.
Gold prices tumbled $7.80 to $3,985.00 U.S. an ounce.
