Wall Street took a hit on Thursday as the Nasdaq tumbled over 2%, dragged down by a disappointing Meta earnings report and a slump in chip makers.
The S&P 500 slipped 1.4% to 7,648.23, while the Dow lost 0.6% to 52,535.67. The tech‑heavy Nasdaq Composite fell the most, dropping 2.2% to 26,101.98.
Meta’s third‑quarter revenue missed expectations, sending its shares down about 7%. The Instagram owner also announced a new class of non‑voting stock to fund its AI push.
Chip stocks added to the pressure, and concerns over AI spending and higher borrowing costs kept the tech sector on edge.
Geopolitical tension in the Middle East lifted oil, with Brent crude up 2.6% to $111.59 a barrel and WTI climbing 1.5% to $98.65.
Investors fled to safety, pushing U.S. Treasury yields lower and French 10‑year bond yields higher amid local unrest.
What This Means For Nasdaq Traders
- Expect more volatility in tech names as AI spending faces tighter credit.
- Meta’s stock could stay under pressure until its AI revenue outlook materializes.
- Oil’s rally may keep inflation worries alive, influencing Fed‑linked rate expectations.
- Bond markets are offering a safe haven; consider diversifying away from the most battered chips.