From CNBC · Sean Conlon,Hugh Leask,Lee Ying Shan,Fred Imbert · · 3m
Dow Rises 533 Points as Tech Sell-Off and Inflation Data Shape Markets
Dow climbs 533 points amid tech sell-off and hot inflation data.
In brief
Dow climbs 533 points amid tech sell-off and hot inflation data. Dow Jones Industrial Average rose 533 points (1%) on Thursday as investors shifted from tech stocks to value, while U.S. producer prices rose 6.3% year-over-year in September. Originally reported by CNBC.
Dow climbs 533 points
The Dow Jones Industrial Average rose 533 points, or 1%, on Thursday as concerns around tech companies overspending on artificial intelligence led investors to rotate out of the trade and seek value elsewhere.
Tech stocks dip
The tech-heavy Nasdaq Composite dropped 0.1% while the S&P 500 rose 0.3% as investors digested U.S. data pointing to persistent inflation.
Memory chip concerns
Seagate Technology and Western Digital added to their declines this week, along with shares of Sk Hynix, which drove a rout in South Korea's Kospi index overnight.
AI market worries
Sources told CNBC that Anthropic's revenue grew to $16.8 billion in the third quarter, with some traders concerned the AI giant's top line might not be growing fast enough to justify the lofty gains in…
CoreWeave rebounds
CoreWeave shares gained 3%, reversing course from the prior day's losses as investors grew fearful the company was borrowing too much for its AI build-out.
Treasurys yield 5%
When Treasurys are yielding 5% and that's the highest since the early 2000s, investors are going to start weighing that versus taking a huge bet on AI.
Retail gains
Shares of retailer Walmart climbed 2%, while pharmaceutical giant Merck rose almost 2% and Nike shares jumped more than 5%.
PPI data shows hot inflation
The September reading on producer prices recorded an increase of 1.3% on the month and 6.3% year over year, the biggest monthly and yearly gains since 2022.
Fed rate hike fears
Concerns that the Federal Reserve could tighten monetary policy more aggressively before year-end weighed on equities Wednesday after new data showed consumer prices in September rose faster than expected on a year-over-year basis.
Chip stocks slide
The iShares Semiconductor ETF (SOXX) is lower for an eighth straight trading day, its first eight-day slide since September 2015; it fell for nine sessions in May 2006.
S&P breadth improves
More than half of S&P 500 constituents are trading above their 200-day moving averages, a notable improvement from late September when that figure was around 40%.
Baird upgrades Bank of America
Wall Street firm Baird upgraded Bank of America to outperform from neutral Thursday, while maintaining its $62 price target, implying a 21% upside from its Wednesday close of $51.
Anthropic revenue growth
Sources told CNBC that Anthropic's revenue grew to $16.8 billion in the third quarter, up from its second-quarter revenue of $11.6 billion.
Crocs shares rise
Crocs shares spiked almost 6% on Thursday after Barclays upgraded the stock to overweight from equal weight, citing greater visibility into the company's multiyear growth story.
Small-cap stocks fall
The Russell 2000, which tracks the performance of small-cap stocks, fell into correction territory on Wednesday, ending the day down 11% from an Aug. 14 record close.
S&P 500 opens lower
The S&P 500 and Nasdaq Composite began Thursday's session in negative territory, with the S&P 500 losing 0.5% and the Nasdaq declining 1.3%.
The big picture
Dow Jones Industrial Average rose 533 points (1%) on Thursday as investors shifted from tech stocks to value, while U.S. producer prices rose 6.3% year-over-year in September.
