FX.co ★ US Stocks Fall Sharply on Thursday

U.S. stocks experienced a significant downturn on Thursday, with the S&P 500 declining by 1%, the Nasdaq dropping by 1.7%, and the Dow Jones decreasing by 317 points. This downward movement was primarily driven by renewed pressure on AI-related and technology shares, impacting the markets on Wall Street. Heightened apprehensions over elevated AI valuations reemerged following mixed earnings reports, leading to a 4.5% drop in Qualcomm, a 2.8% dip in Tesla shares ahead of its shareholder meeting, and a 7% decline in AMD. Oracle and Palantir experienced decreases of 2.6% and 6.8% respectively, while major technology companies such as Nvidia, Microsoft, Amazon, and Meta saw their stocks fall by 3.8%, 1.8%, 2.3%, and 2.7%. Concerns about a further cooling in the labor market exacerbated the tech-driven decline, as Challenger reported 153,000 announced job cuts for October—the highest for that month in 22 years—largely attributed to AI integration and cost-optimization efforts. With official government data releases restricted due to a shutdown, investors turned to private indicators, which suggested a weakened economic landscape, thereby increasing risk aversion.