Stock Market Midday, Oct. 16: Tech Stocks Slide as Investors Rotate Into Defensive Sectors
As of 11:37 AM ET, the S&P 500 (SNPINDEX:^GSPC) is down 0.34% to 7,718, the Nasdaq Composite (NASDAQINDEX:^IXIC) has fallen 1.09% to 26,419, and the Dow Jones Industrial Average (DJINDICES:^DJI) is up 0.29% to 52,327 as investors rotate out of tech stocks into defensive sectors.
Gold prices are up 0.17% to $4,177.51, and the 10-Year Treasury yield has slipped to 5.08%. Energy stocks lead the sector gainers, with strong performances from basic materials and financial stocks, while technology and communication services lagged.
Today's biggest moves
Tesla shares surged in early trading after the automaker revealed a redesigned Roadster utilizing technology from Space Exploration Technologies. By midday, it had erased those gains. Hut 8 tumbled 7% as on-chain analytics tracked significant Bitcoin transfers to exchanges. Netflix declined 2% following a change in its content leadership.
What this means for investors
The Nasdaq Composite is extending its weekly decline as chipmakers, including Intel and Advanced Micro Devices, face a rotation into cash-generating blue chips, leaving the tech sector on track for a difficult finish. CoreWeave tumbled almost 10%, taking it to losses of 23% in the past five days, as artificial intelligence (AI) debt fears continue to roil the stock.
Market participants were watching Federal Reserve Chairman Kevin Warsh’s address to central bankers in Bangkok this morning for clues on whether an interest rate hike is imminent.However, he was tight-lipped about any further tightening measures. Given that the cost of debt has contributed to the recent semiconductor sell-off, borrowing costs are on many investors’ radars right now.
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Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Bitcoin, Intel, Netflix, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
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