Stock Market Midday, Oct. 8: Stocks Edge Lower on Growing AI Caution

Source The Motley Fool

As of 11:37 AM ET, the S&P 500 (SNPINDEX:^GSPC) is down 0.39% to 7,771, while the Nasdaq Composite (NASDAQINDEX:^IXIC) is trading 0.60% lower to 27,372, and the Dow Jones Industrial Average (DJINDICES:^DJI) has slipped 0.40% to 50,973 as investors weigh rising energy costs and hawkish central bank signals.

Gold increased 0.09% to $4,114.73, and the 10-Year Treasury yield edged up slightly to 5.30%. Energy and consumer defensive sectors advanced while healthcare and industrials struggled relative to the broader market.

Today's biggest moves

Marathon Petroleum Corp climbed this morning after Mizuho upped its price target on the stock. Chipotle Mexican Grill is outperforming on takeover rumors. Meanwhile, Marvell Technology shares dropped as artificial intelligence (AI) stocks came under pressure. Universal Display slid following a Citi downgrade.

What this means for investors

Defensive sentiment weighed on indexes this morning as oil prices surged and Treasury yields nudged upwards. WTI crude oil increased over 5% to almost $93 a barrel. Not only do elevated energy prices fuel inflation fears, but they also increase the odds of an October rate hike, making investors more wary.

Semiconductor shares are struggling, with sector heavyweights such as Intel and Advanced Micro Devices falling. In addition to shifting sentiment, news that an Australian data center firm backed by Nvidia hadn't attracted the hoped-for support raised questions about AI funding.

Billionaire investor Ray Dalio reiterated his AI bubble warning, and he's not alone in predicting turbulence. Macquarie strategists point out that many major financial blowouts over the past 50 years have been preceded by rapid changes in bond yields.

For long-term investors, this is a time to be cautious, particularly about high-risk stocks. That doesn't mean avoiding risk altogether, but rather understanding your exposure and modeling how your portfolio might perform in various scenarios.

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Citigroup is an advertising partner of Motley Fool Money. Emma Newbery has positions in Marvell Technology and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Chipotle Mexican Grill, Intel, Marvell Technology, and Nvidia. The Motley Fool recommends Universal Display and recommends the following options: short December 2026 $38 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
Author  FXStreet
Oct 06, Tue
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
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WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recoveryWest Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Author  FXStreet
Oct 07, Wed
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
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WTI slips below $90.50 as Trump signals no pre-election strike on IranWest Texas Intermediate (WTI) oil price declines after posting nearly 2.5% gains in the previous day, trading around $90.30 per barrel during Asian hours on Friday.
Author  FXStreet
Yesterday 01: 23
West Texas Intermediate (WTI) oil price declines after posting nearly 2.5% gains in the previous day, trading around $90.30 per barrel during Asian hours on Friday.
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【Daily Brief】Gold rebounds 1% off a two-month low, Nasdaq drops 1.25% and yields ease — the storm premium keeps WTI near $91Gold trades at $4,174 after rebounding from Wednesday's $4,090 two-month low, the Nasdaq fell 1.25% while the Dow edged higher, and the 10-year Treasury eased to 5.23% from the week's highs. Hurricane Isaias keeps about 25% of Gulf output shut in with WTI near $91, and bitcoin holds below $82,000. The next scheduled tests are the EIA report on 15 October and the FOMC on 27-28 October.
Author  Irene Q.
20 hours ago
Gold trades at $4,174 after rebounding from Wednesday's $4,090 two-month low, the Nasdaq fell 1.25% while the Dow edged higher, and the 10-year Treasury eased to 5.23% from the week's highs. Hurricane Isaias keeps about 25% of Gulf output shut in with WTI near $91, and bitcoin holds below $82,000. The next scheduled tests are the EIA report on 15 October and the FOMC on 27-28 October.
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Hurricane Isaias has shut in a quarter of Gulf oil output — can WTI clear $92 before Thursday's EIA report?WTI trades at $90.80 after rebounding roughly 3% from Wednesday's $87.96 low as Hurricane Isaias — the Atlantic season's first — forces producers to shut in about 25% of US Gulf of Mexico output. Brent holds at $103.41. The first official read on the disruption arrives with the EIA weekly petroleum report on Thursday 15 October — here are the key levels and both scenarios.
Author  Irene Q.
20 hours ago
WTI trades at $90.80 after rebounding roughly 3% from Wednesday's $87.96 low as Hurricane Isaias — the Atlantic season's first — forces producers to shut in about 25% of US Gulf of Mexico output. Brent holds at $103.41. The first official read on the disruption arrives with the EIA weekly petroleum report on Thursday 15 October — here are the key levels and both scenarios.
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