Equities and bond yields dip with AI jitters and economic data in focus
SPY•US stocks fell as concerns about AI spending weighed on technology shares, while third-quarter US growth beat expectations. The 10-year Treasury yield dropped 4.61 basis points to 4.999%, and European stocks rose after the European Central Bank held its key rate at 2.5%.
1. Stocks fall on AI concerns
Wall Street indexes declined as AI-related concerns offset stronger-than-expected US third-quarter growth. The Nasdaq fell 1.41%, while the Dow lost 0.38% and the S&P 500 fell 0.42%.
2. Alphabet and software shares slide
Alphabet sold off after its quarterly report showed hefty AI-related cash burn. ServiceNow and Fortinet each fell more than 20% after their financial updates. Investors were also watching for results from Intel and Amazon due after the close.
3. Yields ease, Europe advances
US Treasury yields fell after economic and inflation data, with the 10-year yield down 4.61 basis points to 4.999%. The European STOXX 600 gained 0.77% after the ECB kept its key rate at 2.5%.
