Stocks drop as Meta dampens AI optimism; Treasury yields fall
SPY•Global stocks fell as Meta’s planned non-voting stock issue renewed concern about AI spending, with the Nasdaq down 2.21% and the S&P 500 down 1.25%. The 10-year US Treasury yield fell below 5%, while Brent crude rose 2.23% to $111.25 a barrel.
1. Stocks retreat on AI concerns
Major stock indexes fell on Thursday after Meta’s plan to issue non-voting stock revived concern about its capital commitments, despite third-quarter revenue that beat expectations. Meta shares fell more than 5%, the Nasdaq dropped 2.21%, and a semiconductor index fell more than 5%. The S&P 500 declined 1.25%, while the Dow fell 0.22%.
2. Yields and oil move
The 10-year US Treasury yield fell 15.17 basis points to 4.994%, its first close below 5% since September 23. Brent crude rose 2.23% to $111.25 a barrel after further Houthi attacks in Saudi Arabia heightened concerns about supply disruptions.
3. Other market moves
Tesla shares eased 0.8% after the company reported earnings and cut its spending forecast. Some Tesla insiders were reportedly concerned that Elon Musk’s public comments on a potential merger with SpaceX could invite shareholder scrutiny and complicate deal talks. French 10-year government bond yields rose above equivalent US Treasury yields for the first time since 2013.
