Markets in 5Friday, October 9
Tech slides on OpenAI revenue report while energy leads and yields ease
Nasdaq fell 1.25% and the S&P 500 lost 0.47% as AI worries and higher oil weighed, while the 10-year yield eased 6 basis points to 5.22%.
Stocks
Nasdaq falls 1.25% as AI worries hit second straight session
The S&P 500 fell 0.47% to 7,765.36 and the Nasdaq lost 1.25% to 27,193.34, both second straight declines after record highs. The Dow rose 0.1% to 51,231.64, while the Russell 2000 dropped 1.31% to 2,793.36. The Financial Times reported OpenAI's annualized revenue at about $50 billion, $20 billion below earlier estimates. Oil prices and inflation concerns also weighed.
Rates
Ten-year Treasury yield falls 6 basis points to 5.22%
According to Treasury data, the 10-year yield closed at 5.22% on Thursday, down from 5.28% a day earlier and up from 4.80% a month ago and 4.13% a year ago. The 2-year yield slipped to 4.75% from 4.77%. The 30-year ended at 5.60%, and the 2s10s spread stood at 47 basis points.
Sectors
Energy gains 2.61% while health care and tech lag
Energy led the S&P 500 sectors with a 2.61% gain, followed by consumer staples at 1.27% and communications at 0.40%. Technology fell 0.42%, real estate 0.62% and health care 1.91%. Nvidia lost 2.90%, Amazon 2.18% and Cisco 2.10%. Oracle fell more than 5% and AMD nearly 4%. Palantir rose 2% after a Goldman Sachs upgrade.
Commodities
Brent slips 1.2% to about $103 on Iran talk comment
Brent crude fell 1.2% to about $103 overnight after President Trump spoke of productive discussions with Iran, according to NordFX. Crude had surged Thursday on Middle East tensions and a cut in US output, which stoked inflation worries. Gold rose 0.09% to $4,114.73.
Global
Europe and Asia advance while US futures point higher
In early trading the DAX rose 0.7% to 24,975.62, the CAC 40 gained 0.8% to 7,789.91 and the FTSE 100 added 0.7% to 10,515.43. Hong Kong's Hang Seng climbed 1.6% to 24,152.44 and Australia's ASX 200 rose 0.6%. Tokyo's Nikkei was nearly flat at 69,030.92. S&P 500 futures were up 0.4% and Dow futures 0.1%.