U.S. equities declined Oct. 8, with the S&P 500 falling 0.39 percent to 7,771 and the Nasdaq Composite dropping 0.60 percent to 27,372. The Dow Jones Industrial Average slipped 0.40 percent to 50,973.
AI-related semiconductor stocks bore the brunt of selling pressure. Marvell Technology, Intel and Advanced Micro Devices all recorded losses as investors reassessed the funding environment for AI infrastructure.
The selloff intensified after an Australian data center firm backed by Nvidia failed to secure anticipated funding. The stumble signals potential weakness in AI capital deployment—a critical metric for semiconductor demand.
Energy prices surged, with WTI crude oil rising over 5 percent to nearly $93 a barrel. The jump elevated expectations for an October Federal Reserve rate hike, with the 10-Year Treasury yield climbing to 5.30 percent. Higher yields make equities less attractive and typically pressure growth-heavy sectors like semiconductors.
Billionaire investor Ray Dalio renewed warnings about an AI bubble. Macquarie strategists noted that rapid shifts in bond yields have preceded major financial blowouts over the last 50 years, suggesting current volatility warrants caution.
Defensive plays outperformed. Marathon Petroleum Corp rose after Mizuho raised its price target. Chipotle Mexican Grill gained on takeover speculation.
Healthcare and industrials underperformed. Universal Display fell following a Citi downgrade.
Gold advanced 0.09 percent to $4,114.73 as investors rotated into safe havens.
