The New York stock market closed the final trading day of the week in the red, as selling pressure on technology stocks—driven by concerns over artificial intelligence investments—spread to other sectors, while ongoing geopolitical tensions in the Middle East pushed oil prices higher.
The Dow Jones industrial average went down by 652.82 points, or 1.23%, to 52,215.16.
The S&P 500 dropped by 0.52%, or 39.75 points, to 7,623.68, while the Nasdaq Composite fell by 0.21%, or 53.52 points, to close at 25,955.34.
The Volatility Index (VIX), often referred to as the market’s “fear index,” rose 2.21% to 19.45.
Equity markets, which experienced a volatile week due to concerns regarding corporate investments in artificial intelligence, saw selling pressure extend to other sectors on the final day of the week.
While strong financial results from SpaceX and Super Micro Computer earlier this week bolstered optimism regarding growth in the artificial intelligence sector, the earnings reports from Tesla and Meta reignited concerns about investment spending within the industry.
As the corporate earnings season continues, investors are now focused on the upcoming financial results from major US tech giants—including Microsoft, Alphabet, and Amazon—expected next week.
Corporate developments also influenced market movements; telecommunications stocks declined following reports that SpaceX is in talks with cellular infrastructure companies to establish a nationwide wireless communication network in the US.
Amid concerns over intensifying competition, shares of AT&T fell 7.96%, Verizon shares dropped 1.18%, and T-Mobile shares declined 7.71%. SpaceX shares rose by 1.89%.
Shares of American Express fell by 3.62% after the company announced it would reduce its global workforce by approximately 5 percent, despite an increase in its revenue and profit for the third quarter of this year.
Meanwhile, rising geopolitical tensions in the Middle East and concerns regarding energy supplies continued to push oil prices higher; the price of a barrel of Brent crude climbed above $117.
The rise in oil prices has heightened concerns about inflation ahead of the Fed monetary policy meeting scheduled for October 27–28.
Nevertheless, market pricing continues to reflect an expectation that the Fed will keep its policy interest rate unchanged at next week’s meeting.
Activity in the bond market was also closely monitored; the yield on the 10-year US Treasury note—which fell below 5% on Thursday for the first time in about a month—hovered at the 4.99% level.
Regarding macroeconomic data, the consumer sentiment index, as measured by the University of Michigan, was revised upward to 48 for October; despite this revision, the index remains at its lowest level in five months.
European stocks close in red
European stock markets ended the day negative excluding Italy, as the pan-European Stoxx Europe 600 index was down 0.31% to 635.77 points.
Britain’s FTSE 100 fell 0.32% to 10,690.36, Germany’s DAX 40 decreased 0.75% to 25,181.65, and France’s CAC 40 dropped 0.36% to 7,782.82.
Italy’s FTSE MIB 30 index went down 0.36% to close at 48,558.86, while Spain’s IBEX 35 rose 0.4% to close at 18,989.80.