The Dow Jones Industrial Average managed a modest gain of 51.77 points to close at 51,231.64, but the broader market struggled. The S&P 500 retreated 0.47% to 7,765.36, while the tech-heavy Nasdaq Composite bore the brunt of the selloff, sliding 1.25% to 27,193.34. Investors are currently caught between the promise of artificial intelligence and the reality of rising capital costs.
In section Market Quotes
Markets Waver as Oil Spikes and AI Revenue Doubts Hit Tech
Oil futures surged 3.6% to $91.49 a barrel after an attack on a vessel near Qatar and the looming threat of Hurricane Isaias, fueling inflation fears. This volatility, coupled with fresh skepticism regarding AI revenue projections, left U.S. markets divided during a turbulent start to the fourth quarter.
Tech stocks faced particular pressure following reports that OpenAI's annualized revenue is tracking roughly $20 billion below previous projections. Nvidia shares dropped 2.9% to $230.48, dragging the PHLX Semiconductor Sector index down 3.4%. Beyond the tech sector, consumer staples firms reported mixed results: PepsiCo reduced its full-year earnings guidance due to rising ingredient costs, while Seven & I Holdings reported a decline in quarterly net profit. Meanwhile, bond markets saw yields retreat following a well-subscribed 30-year Treasury auction, providing a rare point of stability amidst broader economic uncertainty.
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