Market Wrap
The S&P 500 fell 1.8%, with the Nasdaq 100 dropping into correction territory, as Intel's warning that the PC correction has accelerated touched off a broad unwind in semiconductors and AI-linked growth names.
Technology led the damage, with the sector ETF down 4.9% as Intel collapsed 29.1% in its sharpest one-day decline on record, AMD fell 12.2%, Qualcomm dropped 11.4%, and semiconductor funds were hit hardest of all, with the Philadelphia-style chip ETFs down roughly 7% to 9%. Growth and momentum factors underperformed broadly, with momentum-tracking funds down more than 4% while value held closer to flat. Health Care bucked the trend, up 0.5% on an 12.9% surge in Regeneron after a large earnings beat, a raised outlook and an expanded Sanofi collaboration. Consumer Staples gained 1.4% on earnings strength from Mondelez and Colgate-Palmolive, and Energy added 1.9% as crude rallied. Financials slipped 0.7%, with Goldman Sachs down 4.3% and Coinbase down 11.3% even as Cboe Global Markets jumped 6.3%.
Fed officials leaned hawkish through the session. Dallas Fed's Logan said at least two more 25 basis point hikes are needed, while Richmond's Barkin pointed to AI-driven capital spending as a source of demand-side inflationary pressure the Fed can lean against. The Employment Cost Index came in line with expectations at 0.8% for the third quarter, while the Chicago PMI missed, at 55.3 versus 56.0 expected. Treasury yields eased, with the 10-year down to roughly 4.93%.
Oil rallied as the Strait of Hormuz crisis intensified, with Brent settling at $117.64, up 2.4%, after a vessel was struck off Oman's Musandam peninsula, another reportedly hit by an unknown projectile near Lavan Island, and Iran's Fars agency claimed a supertanker struck a mine. Reports described a heavy US military buildup in the region, including carriers, destroyers and Patriot batteries moving into Israel, Jordan, Qatar and Saudi Arabia. Qatari mediators held extended talks in Tehran aimed at a deal, and Trump said late in the session that talks are ongoing.
Binance's hack investigation widened, with losses cited as high as $6.3bn and the FBI and Secret Service now involved; Trump said he is looking into whether North Korea was responsible.
Company News
- Reddit fell more than 29% intraday, a record decline, with no company-specific news cited.
- Regeneron rose on a Q3 beat, raised guidance and a $1bn upfront payment from an expanded Sanofi antibody deal.
- Mondelez beat on EPS, reaffirmed 2026 guidance and agreed to acquire snack maker Undercover Snacks.
- Stryker fell despite raising full-year guidance, after missing on EPS and revenue.
- Chevron and ExxonMobil both beat estimates; Exxon announced a $20bn 2027 buyback.
- AbbVie raised full-year EPS guidance and boosted its dividend.
- Colgate-Palmolive raised full-year sales and EPS guidance.
- FedEx Freight, GoDaddy, Global Payments and Veralto rallied on earnings beats and raised guidance.
- Amazon is reported to be tapping an $80bn supplier loan facility to help fund AI spending.
- Dell, Coherent and Astera Labs each fell double digits.
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