[New York Stock Market] Nasdaq Falls 1.4% as AI Investment Concerns Mount Again

Potential Renewed Strikes on Iran... International Oil Prices Surge

Concerns about investment in artificial intelligence (AI) are mounting again, and all three major New York stock indexes were lower on Oct. 22 (local time). The Nasdaq was down more than 1%, particularly as major technology stocks such as Meta and Tesla weakened.

As of 10:05 a.m. in New York, the Dow was trading at 52,766.19, down 89.90 points (0.17%) from the previous trading session. The S&P 500, which is weighted toward large-cap stocks, was at 7,697.82, down 59.35 points (0.77%), while the Nasdaq, which is weighted toward technology stocks, stood at 26,331.44, down 371.41 points (1.44%).

Market sentiment was weighed down by weakness in technology stocks as concerns resurfaced over financing for AI investment. Meta was down 5%, despite reporting third-quarter revenue and providing a fourth-quarter outlook that both exceeded expectations, as investors focused on its plans for large-scale AI infrastructure investment. Tesla was also down 2%, even though it reported results the previous day that beat market expectations, as weakness in automotive revenue came into focus.

Chip stocks were also weaker. AMD was down 5.38%, Micron Technology 1.61%, Nvidia 2.62%, CoreWeave 4.80%, and SK hynix ADR 3.74%. Nvidia CEO Jensen Huang described demand for neocloud services as "beyond imagination," but said a lack of capital was constraining growth. CNBC reported that market participants are watching both the growth outlook for AI businesses and the financing conditions needed to support them.

International oil prices jumped following reports that the United States and Israel could launch additional strikes on Iran. The New York Times (NYT), citing sources, reported that the two countries were planning to attack Iran again after next month's U.S. midterm elections. U.S. President Donald Trump also said the previous day that the United States was not negotiating with Iran and that "something will happen soon."

Against this backdrop, December-delivery West Texas Intermediate (WTI) crude rose 1.96% from the previous session to $99.05 a barrel on the New York Mercantile Exchange. December-delivery Brent crude rose 2.69% from the previous session to $111.75 a barrel on the ICE Futures Exchange.

U.S. Treasury yields fell as investors moved into U.S. government bonds, a safe-haven asset. The 10-year yield was down more than 9 basis points (1 basis point = 0.01 percentage point) at 5.048%, while the 2-year yield was down about 9 basis points at 4.733%.

This content was produced with the assistance of AI translation services.