Nasdaq 100 suffers worst day since 2020
Magnificent 7: What are the technicals telling traders for each of those companies him
WTI crude oil settles at $90.52, up 2.72% as buyers defend key support
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Europe Close: AI and chip liquidation drags equities lower in US, but Europe is mixed.
Bitcoin falls with risk off sentiment. The price is testing a key swing area target.
The market is telling the hyperscalers it’s happy about a slower data center buildout
Crude oil tests the key confluence area and finds willing buyers
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US initial jobless claims 189K vs 196K estimate
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investingLive European news wrap: BoE raises bank rate to 4.00% as expected
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Wednesday’s rotation out of AI and into the broader market turned into a broad selloff on Thursday. The Nasdaq 100 took the biggest hit, but the Russell 2000 fell 4.45% and the Dow lost more than it gained the day before. Falling Treasury yields helped gold catch a bid. They did little for tech stocks or Bitcoin.
Crude went the other way. After Wednesday’s plunge on hopes for an end to the Iran war, reports of fresh Gulf shipping incidents put the risk to supplies back in focus. The dollar was mixed, with the Australian dollar taking the biggest hit among the majors and the yen holding up best.
The dollar gains against the Aussie but loses ground to the yen
The USD was strongest against the AUD, with AUDUSD down 1.13% to 0.6925. It was weakest against the JPY, with USDJPY down 0.49% to 157.64. Lower U.S. yields were consistent with the move in USDJPY, while the Aussie fell alongside other risk-sensitive assets.
Elsewhere, EURUSD fell 0.09% to 1.1217, GBPUSD fell 0.17% to 1.3448, and NZDUSD fell 0.50% to 0.5592. USDCAD rose 0.31% to 1.4020 despite the rebound in crude, while USDCHF edged down 0.02% to 0.8166.
Treasury yields fall, led by the 2-year
2-year yield 4.4665%, down 11.45 basis points
5-year yield 4.6098%, down 7.82 basis points
10-year yield 4.8408%, down 5.12 basis points
30-year yield 5.2581%, down 2.19 basis points
The curve steepened as short-term yields fell more than long-term yields. The size of the move at the front end stood out given that jobless claims came in below expectations and crude bounced.
U.S. stocks close sharply lower
Dow industrial average −1,833.16 points (−3.44%) to 51,528.16
S&P 500 −334.77 points (−4.35%) to 7,353.85
Nasdaq Composite −1,421.52 points (−5.52%) to 24,315.00
Russell 2000 −127.11 points (−4.45%) to 2,729.84
Nasdaq 100 −1,807.36 points (−6.36%) to 26,629.81
AI suppliers lead the selloff
The selling hit memory, storage, chip equipment and data-center suppliers. Micron was down about 12% during the session as investors questioned how quickly the AI buildout would translate into orders for suppliers. That matters across the supply chain, from the memory that goes into AI accelerators to the drives that store the data.
All seven Magnificent 7 stocks were lower in my late-session check. Nvidia and Tesla were the only two underperforming both Nasdaq indices at that point. Apple and Alphabet held up best, down 1.27% and 1.53%, respectively. Magnificent 7 coverage
Europe closes mixed
Spain’s IBEX 35 +0.59%
France’s CAC 40 +0.34%
Germany’s DAX −0.43%
U.K.’s FTSE 100 −0.43%
Italy’s FTSE MIB −1.03%
InvestingLive’s European close
U.S. data hold up as markets look to Washington
Initial jobless claims fell to 189,000 versus 196,000 expected, while third-quarter productivity rose 3.6% versus 2.8% expected. In the U.K., the Bank of England raised its policy rate by 25 basis points to 4.00%, citing inflation pressure tied to the Middle East conflict and higher energy prices. Sterling still slipped against the dollar.
After the European close, Adam Button highlighted two questions coming out of the midterms. Will the Trump administration change course on Iran, and will it move to ease tariffs as Congress presses for changes? The answers matter for oil supply risk and for the inflation outlook. InvestingLive’s Washington coverage
Crude rebounds as Gulf shipping risks resurface
WTI futures settled at $90.52 a barrel, up $2.40 or 2.72%, and were quoted later at $91.06, up 3.34%. Wednesday’s drop of more than 8% reflected hopes for a path out of the Iran war. On Thursday, reports of several shipping incidents in the Gulf reminded traders that the risk to supply is still there. Treasury yields fell even as crude recovered. WTI settlement and Gulf shipping coverage
Gold gains while silver and copper fall
Spot gold rose 0.68% to $4,088.02. Lower Treasury yields reduced the opportunity cost of holding gold, and the equity selloff was consistent with some demand for a haven. Silver fell 0.94% to $51.76 and copper dropped 3.51% to $6.2035. The weakness in those two was consistent with their greater exposure to industrial demand.
Bitcoin gives back its rebound
Bitcoin was down 5.69% at $75,861 late in the session. It rallied alongside stocks on Wednesday and fell alongside them on Thursday, trading much more like the Nasdaq than gold. See technical post here.
What carries into Friday
The first question is whether buyers return to the chip and data-center names that led the market lower. I’ll also be watching whether the 2-year yield holds onto its decline and whether crude keeps its rebound. If Gulf shipping risks keep oil bid while short-term yields stay under pressure, that will be a divergence worth following.
This article was written by Greg Michalowski at investinglive.com.
