US Stocks Fall, Dow Drops Over 300 Points as 10-Year Treasury Yield Surges to Nearly 19-Year High; Chip Stocks Buck Trend, SpaceX Drops Over 3%

TradingKey - The 10-year US Treasury yield once surged to its highest level since 2007, while international crude oil prices broke through $100, both dampening stock market sentiment. US stocks extended their decline, though chip stocks bucked the trend to post gains.

At the close, the Dow Jones Industrial Average fell 0.63% to 52,093.11; the Nasdaq Composite Index fell 0.78% to 25,981.57; and the S&P 500 Index fell 0.45% to 7,585.73.

Tech Stock Performance

Amazon (AMZN) fell 2.02% to close at $248.42.

BofA Securities released a research report stating that artificial intelligence (AI) giants are calling for a slowdown in AI development and enhanced regulation. The firm believes that while U.S. industry leaders are not advocating a total pause, safety considerations may slow the pace of frontier AI development, which could negatively impact short-term investment sentiment for internet hyperscalers, including Google parent Alphabet and Amazon. However, the firm noted that AI capacity still faces years of robust demand, and Amazon and Alphabet possess favorable margin advantages thanks to their chip technologies.

Among mega-cap tech stocks, Meta Platforms (META) rose 0.70% and Nvidia (NVDA) gained 0.57%. On the downside, SpaceX (SPCX) fell 3.15%, Amazon (AMZN) dropped 2.02%, Microsoft (MSFT) declined 1.68%, Broadcom (AVGO) lost 1.58%, Google (GOOGL) fell 1.26%, TSMC (TSM) slipped 1.02%, Tesla (TSLA) dropped 0.67%, and Apple (AAPL) fell 0.52%.

[Source: FutuBull]

The Philadelphia Semiconductor Index rose 0.4% to 11,175.55 points. Among its 30 constituents, 21 rose and 9 fell.

Among them, Qualcomm (QCOM) rose 4.25%, Advanced Micro Devices (AMD) gained 2.19%, Marvell Technology (MRVL) climbed 1.32%, Arm Holdings (ARM) rose 1.18%, and ASML (ASML) gained 1.12%.

Company News

Meta Plans to Deploy New In-House Arke Chip in First Half of Next Year

Meta Platforms plans to begin deploying its new in-house ARKE chip in data centers in the first half of next year, a move the company says will save cost and energy when running artificial intelligence models. The company first announced plans to develop its own AI chips back in 2023 and is currently testing the third generation of the series, codenamed MTIA 450, or Arke. The next-generation product—codenamed 500, or Astrid—will complete its design work in about a month and will be deployed in data centers by the end of 2027.

Google Launches Most Advanced Real-Time Audio Model Gemini 3.8 Live

Google announced the launch of two real-time audio models, Gemini 3.8 Live and Gemini 3.8 Live Extended Thinking, calling them its most advanced real-time conversational models to date. The two models not only enable more natural and fluent voice interactions, but can also invoke tools, process visual information, and execute complex tasks without interrupting conversation.

Among them, Gemini 3.8 Live focuses on large-scale, low-cost natural voice applications, supporting real-time visual understanding and multilingual dialogue; Gemini 3.8 Live Extended Thinking further adds deep reasoning capabilities, allowing it to "think" while speaking and complete multi-step tasks in the background as users continue interacting. Google stated that the latter ranked first on Artificial Analysis's Speech to Speech Quality Index with a score of 82.6.

OpenAI Partners with Anthropic and Google on AI Safety Issues

OpenAI is partnering with its biggest rivals, Anthropic PBC and Google's DeepMind, to jointly formulate measures to address artificial intelligence (AI) safety issues, stepping up industry-level efforts in response to mounting concerns that the technology could pose economic and security threats. Chris Lehane, OpenAI's global policy chief, said the company's outreach to Anthropic and Google has been ongoing for weeks. OpenAI believes that coordination among the three AI companies on safety matters does not require antitrust immunity. "Working together to prioritize safety is far preferable," Lehane said at a briefing in Washington, D.C.

Amazon Says Data Recovery Hindered at Certain AWS Facilities in Bahrain and UAE

Amazon stated that data access remains unrecoverable for some data centers in the Persian Gulf region due to damage suffered during the US-Iran war. AWS said in its latest status update that data stored solely in Bahrain data centers and certain network areas in the UAE is currently inaccessible. Previously, two AWS data centers in Bahrain were damaged in attacks during the early stages of the conflict, with damage exceeding their service design limits. AWS noted that most customers have resumed operations through backups or by migrating to data centers in other countries, but data in one availability zone in the UAE remains inaccessible, while engineering teams are repairing resources in two other availability zones. The company expects to provide a further update on the recovery of the Bahrain facilities early next year.

Industry & Macro News

U.S., Israeli, and Gulf Military Chiefs Hold Secret Meeting in Germany to Coordinate Response to Iran Situation

According to Axios, senior military officials from the U.S., Israel, and several Arab nations held a secret meeting in Germany last week to discuss the war with Iran and regional tensions. Organized by Brad Cooper, commander of U.S. Central Command, the meeting was the first such high-level gathering since the U.S. and Israel went to war with Iran more than six months ago. The report said attendees included the commander of U.S. Central Command, as well as military chiefs from Israel, Saudi Arabia, the UAE, Bahrain, Kuwait, Qatar, Jordan, and Egypt. Cooper informed all parties that U.S. forces would not withdraw from the Middle East due to Iranian attacks on U.S. bases, and outlined U.S. plans to expand vessel passage through the Strait of Hormuz. IDF Chief of General Staff Eyal Zamir briefed participants on Israeli military operations across multiple fronts. Sources said that as Houthi militants intensify attacks on Saudi Arabia and expand their influence in the Bab-el-Mandeb Strait in the Red Sea, Israel and Saudi Arabia are discussing options with U.S. assistance for Israel to support Saudi military operations, including providing intelligence, surveillance, and reconnaissance support.

U.S. Energy Secretary Says Saudi East-West Pipeline Will Resume Operations Within Days

The U.S. Secretary of Energy stated that the shutdown of Saudi Arabia's East-West pipeline due to attacks was merely a "brief and temporary disruption" and is expected to resume operations "within days." The pipeline was previously damaged by a drone attack launched by pro-Iranian militants, prompting Saudi Arabia to suspend operations and offset the impact by increasing some crude oil exports through the Strait of Hormuz.