The US Stock market opened lower amid declines from notable AI-adjacent tech stocks such as Meta Platforms and Tesla, oil prices also put pressure on the market, as costs rose amid escalating geopolitical conflict.
The Dow Jones Industrial Average shed 218 points and was down 0.4%. The S&P 500 lost 0.9%, and the Nasdaq Composite reduced 1.5%.
Meta Platforms erased $100 billion in value, dropping 5.4%, the most it has dropped intrady since July 30. Tesla's shares fell 2%, after the company announced its results for the third quarter in the previous day. The automotive revenue was not deemed notable by reports despite beating analysts' estimates.
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AI-related stocks came under pressure, weighing on the broader technology sector amid persistent concerns over spending on artificial intelligence infrastructure. Advanced Micro Devices declined more than 5%, while Micron Technology and Nvidia fell 2% and 1%, respectively.
Neocloud provider CoreWeave also dropped nearly 4% as investors remained cautious amid elevated bond yields and credit default swap levels. The decline came despite Nvidia CEO Jensen Huang saying demand for neocloud services was "off the charts." However, Huang noted that limited access to capital continues to constrain the sector's growth.
Investors flocked to U.S. Treasuries in a flight to safety, pushing bond yields sharply lower. The benchmark 10-year Treasury yield fell more than 9 basis points to 5.048%, while the two-year Treasury yield also declined by over 9 basis points to 4.733%, reflecting increased demand for government debt amid risk-off sentiment.
Brent Crude traded 2.66% higher to $ 111.72 at 7:34 p.m. IST. The West Texas Intermediate was up 2% to $99.09 at 7:37 p.m. IST.
(This is a developing story.)
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