New York:The New York stock market finished the final trading day of the week in negative territory, as selling pressure on technology stocks, driven by concerns over artificial intelligence investments, extended to other sectors. Simultaneously, ongoing geopolitical tensions in the Middle East pushed oil prices higher.
According to Anadolu Agency – English, the Dow Jones industrial average decreased by 652.82 points, or 1.23%, to 52,215.16. The S&P 500 dropped by 0.52%, or 39.75 points, to 7,623.68, while the Nasdaq Composite fell by 0.21%, or 53.52 points, closing at 25,955.34. The Volatility Index (VIX), often referred to as the market's "fear index," rose 2.21% to 19.45.
Equity markets experienced a volatile week due to concerns regarding corporate investments in artificial intelligence, with selling pressure extending to other sectors on the final day. While strong financial results from SpaceX and Super Micro Computer earlier in the week bolstered optimism about growth in the AI sector, earnings reports from Tesla and Meta reignited concerns about investment spending within the industry.
As the corporate earnings season continues, investors are focusing on upcoming financial results from major US tech giants, including Microsoft, Alphabet, and Amazon, expected next week. Corporate developments also influenced market movements, with telecommunications stocks declining following reports of SpaceX's discussions with cellular infrastructure companies to establish a nationwide wireless communication network in the US.
Amid concerns over intensifying competition, shares of AT&T fell 7.96%, Verizon shares dropped 1.18%, and T-Mobile shares declined 7.71%, while SpaceX shares rose by 1.89%. Shares of American Express fell by 3.62% after the company announced a reduction in its global workforce by approximately 5 percent, despite an increase in its revenue and profit for the third quarter of this year.
Rising geopolitical tensions in the Middle East and concerns regarding energy supplies continued to push oil prices higher, with the price of a barrel of Brent crude climbing above $117. This rise in oil prices has heightened concerns about inflation ahead of the Federal Reserve's monetary policy meeting scheduled for October 27-28. However, market pricing continues to reflect an expectation that the Fed will keep its policy interest rate unchanged at next week's meeting.
Activity in the bond market was also closely monitored, with the yield on the 10-year US Treasury note hovering at the 4.99% level after falling below 5% on Thursday for the first time in about a month. Regarding macroeconomic data, the consumer sentiment index, as measured by the University of Michigan, was revised upward to 48 for October, but it remains at its lowest level in five months.
In European markets, stock indices ended the day negative, excluding Italy. The pan-European Stoxx Europe 600 index was down 0.31% to 635.77 points. Britain's FTSE 100 fell 0.32% to 10,690.36, Germany's DAX 40 decreased 0.75% to 25,181.65, and France's CAC 40 dropped 0.36% to 7,782.82. Italy's FTSE MIB 30 index went down 0.36% to close at 48,558.86, while Spain's IBEX 35 rose 0.4% to close at 18,989.80.