Tech Selloff Sparks Broad Market Rotation as Bonds Rally — US Market Wrap
A selloff in major technology stocks triggered a rotation into the broader equity market, while renewed concerns over the artificial-intelligence trade boosted demand for Treasuries. Alphabet plunged a record 12% following disappointing sales, reviving doubts about the sustainability of AI-related investment. The Nasdaq 100 fell 1.4%, while a basket of AI-linked stocks declined 2.7%. Despite the technology weakness, more than 400 companies in the S&P 500 advanced, highlighting a shift toward other sectors. Microsoft attracted strong demand for its $25 billion debt offering, while Amazon slumped in after-hours trading as rising spending to meet demand for AI services weighed on sentiment. Intel also declined after issuing a revenue forecast below expectations. Treasuries advanced as technology-sector weakness encouraged demand for safer assets, while easing oil prices amid diplomatic efforts in the Middle East provided additional support. Economic data showed the US economy expanded at its fastest pace in a year during the third quarter, while the Federal Reserve's preferred inflation gauge, the PCE price index, rose 0.5% in September, its largest monthly increase in six months. The
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A selloff in major technology stocks triggered a rotation into the broader equity market, while renewed concerns over the artificial-intelligence trade boosted demand for Treasuries. Alphabet plunged a record 12% following disappointing sales, reviving doubts about the sustainability of AI-related investment. The Nasdaq 100 fell 1.4%, while a basket of AI-linked stocks declined 2.7%. Despite the technology weakness, more than 400 companies in the S&P 500 advanced, highlighting a shift toward other sectors.
Microsoft attracted strong demand for its $25 billion debt offering, while Amazon slumped in after-hours trading as rising spending to meet demand for AI services weighed on sentiment. Intel also declined after issuing a revenue forecast below expectations. Treasuries advanced as technology-sector weakness encouraged demand for safer assets, while easing oil prices amid diplomatic efforts in the Middle East provided additional support.
Economic data showed the US economy expanded at its fastest pace in a year during the third quarter, while the Federal Reserve's preferred inflation gauge, the PCE price index, rose 0.5% in September, its largest monthly increase in six months. The figures followed the Fed's decision to leave interest rates unchanged.