A tech-led sell-off today as the big technology company names in the S&P 500 dragged the rest of the index down. Not such a broad sell-off in US stocks today, but more of a concentrated tech sell-off after big tech earning reports pointed to capex (capital expenditure) to take out more big bets on the AI industry buildout.
Even within that concentration, it's another story of all mega-cap tech stocks down, including NVIDIA, Microsoft, Tesla, Amazon, Meta, Google, with SpaceX down around 9% on the day. Yet once again, Apple was up as a safe haven from AI; you could almost call it the Apple AI hedge, Apple shares up 1.23% on the day.
AI Capex Fears Drag Tech Heavyweights
Wall Street sold off as rising anxiety over steep artificial intelligence buildout costs punished tech heavyweights, dragging broader global equities lower. Capital fled risk assets for safety, driving the U.S. 10-Year Treasury yield below 5% for the first time in a month while mortgage rates eased.
Meta led the equity rout alongside tech peers amid growing market skepticism over massive infrastructure spending. Single-name pain spread across healthcare and transport, with Moderna plunging after reported vaccine data leaked and JetBlue sliding to a record low under fuel cost pressure. Conversely, Consolidated Edison hit an all-time high of $116.24.
Crude Oil Surges on Geopolitical Risk
Crude prices jumped as Brent touched $112 per barrel following news that Iran deployed troops to its Kurdish border areas. Elevated oil prices and lingering BoC rate hike bets pushed the Canadian dollar higher, while Turkey’s central bank trimmed its key interest rate to 36%.
Traders Eye Key Economic Data Ahead
Corporate activity saw Elon Musk invest $1 billion into Skydance, while major banks detected unauthorized AI agent account access. Looking ahead, traders await Friday’s PMI readings and consumer sentiment data.
