Oracle's cloud profit margins were reported to be disappointing, triggering a sell-off in large technology and consumer stocks, which dragged down the overall U.S. stock market. Additionally, rising inflation expectations and the ongoing U.S. government shutdown provided a macro backdrop for the market correction. After reaching a historic high, the S&amp;P and Nasdaq fell in early trading, ending the S&amp;P's seven-day winning streak.
Here are the movements of core assets:
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In early U.S. trading, the three major U.S. stock indices opened slightly higher, with most technology stocks rising. IBM rose about 2%, and Dell Technologies surged about 5% after significantly raising its earnings forecast. AMD continued its strong momentum from the previous trading day, rising about 6%. Mining company Trilogy Metals soared over 200% after receiving investment from the U.S. government.
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The precious metals market performed impressively, with COMEX December gold futures historically breaking through the $4,000 per ounce barrier for the first time. In the foreign exchange market, the euro fell 0.4% against the dollar due to news that the EU proposed to limit tax-free steel imports and may double tariffs on over-quota steel.
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During U.S. trading, market sentiment reversed during the session. Oracle reported losses in its Nvidia server leasing business, causing its stock price to plummet over 7%, dragging down the overall market. Meanwhile, data from the New York Fed showed that U.S. short-term inflation expectations hit a five-month high, adding pressure to the market.
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At midday in U.S. trading, selling pressure intensified. The Philadelphia Semiconductor Index led the decline, falling over 2%, with most stocks in the sector declining. The major U.S. stock indices widened their losses, with the Nasdaq briefly dropping over 0.9%. Cryptocurrencies fell broadly, with Bitcoin dipping below $121,000, retreating over $5,000 from the intraday high of over $126,000 set on Monday.
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Previously strong precious metals also plummeted from their highs. Spot gold and COMEX gold futures significantly retreated from historical peaks, with COMEX gold futures falling below the $4,000 mark, and COMEX silver futures seeing an intraday decline of up to 2.0%. Meanwhile, the U.S. dollar index strengthened, with the dollar rising against the yen by 1%, approaching the 152 mark.
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In the bond market, the U.S. Treasury's three-year bond auction attracted strong demand, leading to a decline in U.S. Treasury yields.
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At the close of U.S. trading, Tesla officially launched the standard Model Y priced below $40,000, but its stock price was not boosted, with the decline expanding to 4% by the end of trading. Ultimately, all three major U.S. stock indices closed lower, with the Nasdaq down 0.67%. The semiconductor index and the Russell 2000 small-cap index had the largest declines.
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<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/193c0eff-11be-46d5-8999-f2a7ed461815.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/193c0eff-11be-46d5-8999-f2a7ed461815.png"/> (Daily movements of U.S. benchmark stock indices)
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On Wednesday, all three major U.S. stock indices closed lower, ending the S&amp;P's seven-day winning streak. The U.S. small-cap index fell over 1.1%, and the semiconductor index dropped over 2%. The China concept index fell over 2.2%, with Pony AI down over 7.7%.
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The S&amp;P 500 index closed down 25.69 points, a decline of 0.38%, at 6714.59 points
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The Dow Jones Industrial Average closed down 91.99 points, a decrease of 0.20%, at 46,602.98 points.
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The Nasdaq closed down 153.304 points, a decrease of 0.67%, at 22,788.363 points. The Nasdaq 100 index closed down 138.332 points, a decrease of 0.55%, at 24,840.227 points.
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The Russell 2000 index closed down 1.12%, at 2,458.423 points.
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The VIX index closed up 5.38%, at 17.25.
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U.S. Sector ETFs:
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<li>The semiconductor ETF fell 2.24%, consumer discretionary dropped 1.72%, and the AI robotics sector fell 1.58%. Consumer staples rose 0.92%, and utilities increased 0.45%.</li>
</ul>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0096ed57-c01c-4a65-9bad-2a25c96fff99.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/0096ed57-c01c-4a65-9bad-2a25c96fff99.png"/> (October 7th, U.S. sector ETFs)
Tech Giants:
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The Magnificent 7 index of U.S. tech stocks fell 0.77%, at 200.49 points.
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Tesla closed down 4.45%, Alphabet A down 1.86%, Microsoft, Meta, Nvidia, and Apple fell up to 0.87%, while Amazon closed up 0.39%.
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</ul>
Chip Stocks:
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The Philadelphia Semiconductor Index closed down 2.06%, at 6,634.762 points.
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TSMC ADR closed down 2.77%, AMD rose 3.83%.
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</ul>
Chinese Concept Stocks:
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The Nasdaq Golden Dragon China Index closed down 2.24%, at 8,640.94 points.
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Among popular Chinese concept stocks, Pony AI closed down 7.73%, Century Internet down 6.41%, and Yatsen Holding, GDS Holdings, and Luokung Technology fell up to 5.71%.
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</ul>
Other Individual Stocks:
<ul>
<li>Eli Lilly fell 0.17%, while Berkshire Hathaway Class B shares owned by Warren Buffett closed up 0.46%.</li>
</ul>
</blockquote>
Eurozone blue-chip stocks fell nearly 0.3%, but LVMH rebounded over 3.6%, as investors focused on the situation in France. The Danish stock index fell 1.2%, the Dutch index dropped over 0.6%, and the Italian banking sector fell about 0.6%.
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Pan-European Stocks:
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The European STOXX 600 index closed down 0.17%, at 569.27 points.
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The Eurozone STOXX 50 index closed down 0.27%, at 5,613.62 points.
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National Indices:
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The German DAX 30 index closed up 0.03%, at 24,385.78 points.
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The French CAC 40 index closed up 0.04%, at 7,974.85 points.
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The UK FTSE 100 Index closed up 0.05%, at 9,483.58 points.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/c45ab5c2-78a5-4e72-b988-4fce5f77fc6e.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/c45ab5c2-78a5-4e72-b988-4fce5f77fc6e.png"/> (Performance of major European and American stock indices on October 7)
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</ul>
Other individual stocks:
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Among the blue-chip stocks in the Eurozone, ING Groep N.V. fell 3.20%, ASML Holding, BMW, and Bayer dropped 2.51%-2.01%, entering the top four declines.
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Among all constituents of the European STOXX 600 Index, B&amp;M European Value Retail fell 7.81%, Entain dropped 6.54%, Frontline fell 4.90%, making it the third largest decline, while defense stocks Kongsberg Gruppen fell 4.27% and RENK Group dropped 3.35%.
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Strong auction of three-year U.S. Treasuries, with U.S. Treasury yields generally declining.
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U.S. Treasuries:
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At the New York close, the yield on the 10-year U.S. Treasury bond fell by 2.71 basis points, to 4.1249%.
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The yield on the two-year U.S. Treasury bond fell by 2.06 basis points, to 3.5677%, with an intraday trading range of 3.6028%-3.5615%.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6e5a0b27-dd5f-4f86-a778-cf605b902e34.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6e5a0b27-dd5f-4f86-a778-cf605b902e34.png"/> (U.S. Treasury yields for major maturities rose and then fell)
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</ul>
</blockquote>

PONY

ORCL

The US small-cap index closed down more than 1.1%, and the semiconductor index fell over 2%. Oracle dropped 2.52%, and Tesla fell 4.45%. Mining company Trilogy Metals surged over 210% due to a stake from the US government. The China concept index closed down more than 2.2%, and Pony AI fell over 7.7%. The French CAC 40 index rebounded 0.04%. The 10-year US Treasury yield fell 2.9%

- U.S. stock indices fell after Oracle's disappointing profit margins triggered a sell-off in major tech and consumer stocks, ending the S&P's seven-day rally.  
- Inflation expectations rose, and the ongoing U.S. government shutdown added to market pressures, with the Nasdaq dropping 0.67% and the Philadelphia Semiconductor Index falling over 2%.  
- Gold futures initially surpassed $4,000 per ounce but retreated, while the dollar strengthened against the euro and yen, reflecting broader market volatility.

Wallstreetcn

Pony AI

Oracle

Concerns over AI profit margins trigger a sell-off in tech stocks, S&P ends seven consecutive gains, gold futures break through $4,000, Bitcoin declines