Equities and bond yields dip with AI jitters and economic data in focus
SPY•U.S. stocks fell, with the Nasdaq down 1.37%, as AI spending concerns weighed on technology shares, while Treasury yields declined after stronger-than-expected third-quarter growth and in-line inflation data. The STOXX 600 rose 0.77% after the European Central Bank held its key rate at 2.5%.
1. U.S. stocks retreat
The Nasdaq fell 1.37% to 26,184.72 on Thursday, while the S&P 500 lost 0.30% and the Dow fell 0.25%. Alphabet sold off after reporting a large AI-related cash burn, and ServiceNow and Fortinet each dropped more than 20% after financial updates.
2. Yields ease, Europe gains
The U.S. 10-year Treasury yield fell 10.6 basis points to 4.939%, as investors assessed third-quarter GDP growth that exceeded expectations and in-line inflation data. The STOXX 600 rose 0.77% after the ECB held its key rate at 2.5%; President Christine Lagarde said she would leave her post in February.
3. After-hours earnings weigh
Intel shares fell more than 17% after the bell following weak results and guidance, while Amazon shares declined more than 5% after it reported a large third-quarter cash burn and forecast holiday-quarter revenue largely below Wall Street estimates.
