Stocks extended declines as escalating concern about the Mideast conflict pushed oil futures higher, spurring inflation fears with US midterm elections less than two weeks away. Meta Platforms Inc. tumbled as investors parsed its results along with the rest of the latest batch of technology earnings for evidence that massive spending on AI is paying off.
Selling was concentrated in technology megacaps, with the Nasdaq 100 Index sliding as much as 3% before paring the decline. The Philadelphia Semiconductor Index, or SOX, tumbled 6.4%, the most intraday since July. The S&P 500 Index dropped 1.4%, while an equal-weighted version of the S&P 500 Index — a proxy for market breadth — advanced 0.2%. The equal-weighted gauge was on track for its best day since 2024 relative to the S&P 500.
“It feels like just a risk-off day and tech is always the first to get hit,” said Joseph Saluzzi, partner and co-head of equity trading at Themis Trading LLC. “The bond rally also confirms the risk-off approach.” Investors are concerned that “post-election, the Iran war may escalate and potentially continue for a longer time than anticipated.”
Stocks extended declines as escalating concern about the Mideast conflict pushed oil futures higher, spurring inflation fears with US midterm elections less than two weeks away. Meta Platforms Inc. tumbled as investors parsed its results along with the rest of the latest batch of technology earnings for evidence that massive spending on AI is paying off.
Selling was concentrated in technology megacaps, with the Nasdaq 100 Index sliding as much as 3% before paring the decline. The Philadelphia Semiconductor Index, or SOX, tumbled 6.4%, the most intraday since July. The S&P 500 Index dropped 1.4%, while an equal-weighted version of the S&P 500 Index — a proxy for market breadth — advanced 0.2%. The equal-weighted gauge was on track for its best day since 2024 relative to the S&P 500.