Selling pressure intensified, particularly among tech stocks, as growing concerns over profitability mounted due to sluggish Big Tech earnings and the heavy burden of massive AI investments. Furthermore, elevated interest rate burdens driven by persistent inflation weighed further on overall investor sentiment.
Alphabet's stock plunged and selling pressure spread across tech stocks as sluggish Q3 earnings and a disclosure of $98.5 billion in AI-related contingent commitments heightened concerns over AI profitability.
The U.S. September PCE price index rose year-over-year, heightening caution over additional Fed rate hikes and the maintenance of a tight monetary stance.
Amazon and Intel tumbled in extended trading after reporting post-market earnings and weak guidance that fell short of market expectations.
U.S. advance Q3 GDP growth came in at an annualized rate of 3.4%, demonstrating robust growth that beat market expectations.
Microsoft successfully issued $25 billion in corporate bonds to fund investments in AI data center infrastructure.
Market sentiment cooled sharply amid growing concerns over AI overinvestment and weakening profitability among global big tech companies. As a result, heavy selling pressure emerged across domestic and global equity markets, particularly in semiconductor and major tech stocks, leading to a significant increase in index volatility.
Spreading concerns over AI overinvestment by US big tech companies including Alphabet caused South Korea's KOSPI index to plunge over 4% intraday, triggering a sell sidecar.
Alphabet's stock price plummeted 12.64% as its third-quarter AI CAPEX surged and free cash flow turned negative, reigniting skepticism over AI investments.
The boards of Tesla and SpaceX officially began reviewing a merger between the two companies to establish a vertically integrated AI, robotics, and space ecosystem.
US intelligence authorities launched an investigation after determining that a Singapore data center executive who contacted Nvidia's CEO was a Chinese intelligence asset involved in circumvention exports.
