[New York Stock Market] Stocks fall across the board amid rate-hike concerns; AI-related shares plunge

[Financial News]  

All three major New York stock indexes fell on the 14th (local time).
The outlook for another Fed rate hike this month rose sharply after the September CPI, released by the U.S. Department of Labor, increased by more than expected.
Fears that massive data-center investments would make the financial burden heavier if interest rates rose sent AI-related shares, including semiconductors and big tech, reeling.

All three major indexes fell sharply, led by technology stocks.
The S&P 500, a broad gauge of the market, fell 86.51 points (1.11%) from the previous session to 7,718.94, while the Nasdaq Composite plunged 511.51 points (1.88%) to close at 26,692.87.
The Nasdaq 100, made up of 100 large-cap technology stocks, plunged 618.67 points (2.02%), slipping below the 30,000 mark to 29,950.82. TQQQ, a leveraged exchange-traded fund (ETF) that tracks three times the index’s daily move, tumbled $4.69 (5.95%) to $74.12.
The Dow Jones Industrial Average, made up of 30 blue-chip stocks, pared much of its losses late in the session. The Dow slipped 48.62 points (0.09%) to close slightly lower at 51,621.48.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street’s “fear gauge,” surged 1.62 points (10.64%) to 16.89.

Semiconductor stocks plunged. As a prominent equipment-intensive industry, the semiconductor sector faces higher financing costs if interest rates rise, while the present value of future earnings declines.
Nvidia, the sector’s leader, fell $7.22 (3.16%) to $221.30, while Broadcom closed down $11.06 (3.10%) at $346.25.
AMD tumbled $34.71 (5.73%) to $570.82, while Intel fell back $4.69 (4.56%) to $98.12.
Micron fell $38.91 (4.08%) to $914.13, while SK hynix’s American depositary receipt (ADR) plunged $9.51 (6.06%) to $147.55.
The leveraged ETF SOXL, known as “SOXL,” which tracks three times the daily share-price moves of 30 major semiconductor stocks, plunged $17.03 (13.35%) to $110.54.

Big tech stocks also struggled, with Apple the only exception.
Apple, relatively insulated from borrowing costs because it has been cautious about AI investment, closed up $1.69 (0.50%) at $342.96.
Alphabet, by contrast, ended the session down $6.14 (1.74%) at $347.64, while Microsoft (MS) fell $9.76 (1.80%) to $533.69.
Palantir tumbled $7.70 (3.69%) to $200.97, while Meta Platforms fell $24.96 (3.27%) to $737.54.
SpaceX ended trading down $4.38 (2.80%) at $152.16, while Tesla fell $8.07 (2.15%) to $367.16.

Neocloud-related stocks plunged as their leading player, CoreWeave, came under pressure.
CoreWeave’s shares sank as put options betting on further declines surged in the options market, while the Financial Times (FT) flagged five major risks and warned of the dangers. CoreWeave plunged $12.03 (15.46%) to $65.78.
Nebius plunged $20.85 (10.08%) to $186.01, while Lumentum slid $91.66 (9.28%) to $896.33.
Australian neocloud company IREN also plunged $4.24 (12.18%), sinking to $30.56.

[email protected] Song Gyeong-jae Reporter