It’s getting increasingly ugly in the stock market.
The S&P 500 is at the lows of the day, down 98 points to 7706. The 1.3% decline is the largest since late July and erases most of this month’s gains. It’s also a day with some wildly divergent fortunes.
The AI names and rate-sensitive names are both suffering while defensive stocks surge. Nvidia is lower by 3.2% as part of a broad selloff in chip and memory names that includes:
AMD -5.6%
Broadcom -3.1%
Micron -3.2%
Intel -4.1%
Dell -11.9%
Other megacap tech names are also being hit by profit taking and AI worries.
GOOGL -1.5%
MSFT -1.5%
META -3.6%
TSLA -2.2%
ORCL -7.9%
PANW -5.1%
Apple is bucking the trend with a 0.3% gain in a sign that it’s increasingly seen as outside the tech bubble.
On the financial side, shares of Bank of America are down 5.8% after it missed earnings earlier today. Notably, BAC was upbeat on the US economy and the consumer.
“We believe that Bank of America, our clearest economic signal comes from the daily activity of the 70 million clients and thousands of businesses that bank with us. And the message has been consistent. Consumers continue to spend with year-to-date money moving up 5% from 2025… and that’s similar to what it was for the third quarter and similar to what has shown up so far in early October,” said CEO Brian Moynihan.
CFO Alastair Borthwick also talked about improving credit and said “it’s helped a great deal that the consumer is so strong and that the economy is strong. So that is just another piece of that evidence… that the economy is in a good place at this point.”
What’s also interesting is that the bond market has reversed its earlier losses. That means that 10-year yields are now lower on they day after spiking earlier. Even 2-year yields are up only 2.7 bps after jumping by 15 bps in the aftermath of CPI. Clearly someone is sniffing out some weakness.
In terms of the technicals, I would tend to lean against this minor support trendline.
This article was written by Adam Button at investinglive.com.
