Stocks are experiencing downward pressure once more on Friday, as apprehensions regarding the vitality of the AI trade continue to escalate. Futures associated with the tech-heavy Nasdaq and the benchmark S&P 500 experienced declines of 2.6% and 1.1%, respectively, in recent trading, whereas futures for the Dow Jones Industrial Average remained relatively stable. Each of the major indexes closed lower yesterday, with the Nasdaq dropping 1.6% as a disappointing earnings report from Google parent Alphabet weighed on the tech sector. This morning, results from Amazon and Intel, released after yesterday’s closing bell, are dragging the market lower.
Amazon shares experienced a decline of 7% recently, following the company’s failure to meet expectations on both revenue and earnings. Additionally, a concerning drop in free cash flow was reported, attributed to substantial expenditures in artificial intelligence. Intel shares experienced a decline of 25% following the company’s issuance of a disappointing fourth-quarter outlook, which overshadowed the better-than-anticipated results from the previous quarter. Major chipmakers are experiencing significant declines across the board in anticipation of the opening bell. Advanced Micro Devices tumbled 9%, while Micron and Marvell dropped 6%, and Nvidia and Broadcom declined more than 3%. The iShares Semiconductor ETF was down more than 6%.
Crypto-related stocks experienced a significant decline as bitcoin fell to $77,400, a drop from the previous day’s peak of approximately $82,000, reflecting a broader risk-off sentiment in the markets. Shares of Strategy, the largest corporate holder of bitcoin, were down 7% recently, while Coinbase and Robinhood both lost more than 6%. In other market action, WTI oil futures experienced an increase of nearly 2%, reaching $103.90 per barrel, whereas gold futures declined by 1.4%, settling at $3,975 an ounce, hovering close to their lowest level since last November. The yield on the 10-year Treasury, a critical determinant of interest rates on loans, stood at 4.92%, reflecting a decrease from the previous day’s close of 4.94%.
