Traders work on the floor of the New York Stock Exchange during morning trading on Oct. 14, 2026 in New York City.
Michael M. Santiago | Getty Images
Stocks were mixed on Thursday as concerns around tech companies overspending on artificial intelligence grew, leading investors to rotate out of the trade and seek value elsewhere.
The Dow Jones Industrial Average added 553 points, or 1.1%, while the tech-heavy Nasdaq Composite dropped 0.2%. The S&P 500 rose 0.2%.
CoreWeave shares dropped 7%, building on Wednesday's losses. The stock tumbled more than 15% in the previous session as investors grew fearful that the company was borrowing too much for its AI build-out. CoreWeave corporate bond yields also surged.
"When Treasurys are yielding 5% and that's the highest since the early 2000s, investors are going to start weighing that versus taking a huge bet on on AI," said Alex Shahidi, co-CIO of MAI Capital Management's Evoke. "It's not are you in or out of AI; it's how concentrated you want to be."
Compounding worries in the AI space, sources told CNBC that Anthropic's revenue grew to $16.8 billion in the third quarter, with some traders concerned the AI giant's top line might not be growing fast enough to justify the lofty gains in chipmakers.
Micron Technology added to its declines this week, along with shares of Sk Hynix, which drove a rout in South Korea's Kospi index overnight. Traders were becoming concerned about a potential memory chip glut as South Korea faces increasing competition from China. Tesla CEO Elon Musk discussed the matter in a post on X, saying that "China will be making a LOT of RAM in 2028."
However, the market was supported by gains in areas outside of tech. Shares of retailer Walmart climbed 4%, while pharmaceutical giant Merck rose more than 3%. Nike shares also jumped more than 5%.
Investors also reacted to more insights on the inflation front. The September reading on producer prices recorded an increase of 1.3% on the month and 6.3% year over year — the biggest monthly and yearly gains since 2022.
Concerns that the Federal Reserve could tighten monetary policy more aggressively before year-end weighed on equities Wednesday after new data showed consumer prices in September rose faster than expected on a year-over-year basis.
"Today's PPI report, after Wednesday's CPI, confirms inflation is getting worse as energy prices stay high," said David Russell, global head of market strategy at TradeStation. "Election or no election, prices are rising and the Fed might be forced to act."
DA Davidson analyst says Anthropic reported revenues disappointed
Gil Luria, analyst at DA Davidson, said Anthropic's revenue for the third quarter was "not what anyone wanted to see."
Sources told CNBC that the AI giant's revenue grew to $16.8 billion in the third quarter, up from its second-quarter revenue of $11.6 billion. But, that growth in the third quarter was slower than its rise in the previous one, as first-quarter revenue for the company was just $4.7 billion.
Luria said, though, that there was good news as the Financial Times reported that Antrhopic had positive cash flow in the third quarter, pushing back on the narrative that the AI labs can't get to profitability. But he added that investors shouldn't be looking at a single company to judge the performance of the sector, and rather focus on corporate and consumer spending on the technology.
"We expect the overall market for AI spend to continue on a steep path as it diversifies away from Anthropic and OpenAI," he wrote in a Thursday note. "These two will see their market get cut from providing all-encompassing AI services to only providing frontier tokens for mission critical cost-insensitive applications… This overall demand should support more AI compute demand and more data center construction, even if it doesn't meet the most outlandish extrapolations."
— Davis Giangiulio
1 Hour Ago
Crocs shares rise after Barclays upgrade
Crocs shoes for sale at a store in New York, US, on Wednesday, Aug. 2, 2023.
Jeenah Moon | Bloomberg | Getty Images
Crocs shares spiked almost 6% on Thursday after Barclays upgraded the stock to overweight from equal weight. Analyst Adrienne Yih also lifted the price target 18% to $139 from $118, saying that there is now greater visibility into the company's multiyear growth story.
CNBC's Justin Zacks recently called out the opportunity in Crocs stock, saying that its product innovation has led to more stable sales growth and it has a huge opportunity to grow in international markets like China. He also expects a turnaround at its HeyDude brand could be a catalyst for the stock.
Yih cited these reasons and added that the company was showing direct-to-consumer strength, promotional discipline, and an inflection in its inventory management.
"Importantly, many of the company's strongest-performing products are newer franchises outside of the traditional Classic Clog, giving us greater confidence that growth is becoming broader and more durable," Yih wrote.
CROX, 1-day
— Christina Cheddar Berk
2 Hours Ago
Small-cap stocks are in correction territory
Tech is getting all the headlines this week — and rightfully so — but other parts of the stock market are faring even worse.
The Russell 2000, which tracks the performance of small-cap stocks, fell into correction territory on Wednesday, ending the day down 11% from an Aug. 14 record close. For the week, the benchmark is down 2.8%, slightly underperforming the Nasdaq Composite's 2.5% decline.
Russell 2000, year-to-date
CNBC Pro subscribers can read about what factors are weighing on small caps here.
— Fred Imbert
2 Hours Ago
S&P 500, Nasdaq open lower
The S&P 500 and Nasdaq Composite began Thursday's session in negative territory.
The broad market index lost 0.5% shortly after the opening bell, while the tech-heavy Nasdaq declined 1.3%. The Dow Jones Industrial Average, however, bucked the trend with a rise of 269 points, or 0.5%.
— Sean Conlon
3 Hours Ago
PPI rises more than expected in September
An employee stocks the meat department's shelves in a grocery store on March 11, 2026 in Miami, Florida.
Joe Raedle | Getty Images
The producer price index, a gauge of wholesale inflation, rose 6.3% in September on a year-over-year basis. That's well above a Dow Jones consensus of 5.5% and marked the largest 12-month advance for PPI since December 2022. Month over month, PPI rose 1.3% last month, topping a 0.6% estimate.
The report comes a day after the BLS released hotter-than-expected U.S. consumer price index data.
— Fred Imbert
3 Hours Ago
Investors await fresh inflation data
Investors on Thursday morning will get another look at the inflation picture with the release of the September reading for the producer price index.
On a monthly basis, economists polled by Dow Jones are expecting the index to show a 0.6% increase, while the year-over-year figure is expected to come in at 5.5%.
Excluding food and energy, core PPI is anticipated to rise 0.3% month over month.
The data comes a day after September's consumer price index reading, which showed slightly hotter-than-expected figures for the annual rate of headline inflation as well as core CPI on a monthly and yearly basis.
— Sean Conlon
4 Hours Ago
CoreWeave, Rocket Lab and Walmart among the big movers Thursday morning
Check out the companies making the biggest moves premarket:
- CoreWeave — Shares of the cloud infrastructure technology company fell for a second day, losing 6% on Thursday as investors worry that CoreWeave, along with other technology companies, are borrowing too much for an artificial intelligence build-out.
- Rocket Lab— The space company dropped nearly 10% after it delayed the launch of its Neutron rocket to 2027.
- Walmart — The retailer popped more than 2% after Deutsche Bank upgraded the stock to buy from hold, citing a positive outlook for 2027. The bank expects incremental margins to improve and noted current inflation levels could help the company attract consumers.
Read the full list here.
— Ananya Chetia
6 Hours Ago
Euro zone industrial production falls further than expected
A large, modern petrochemical plant at dusk in industrial district near Rotterdam, Netherlands, Benelux, Europe. Distillation towers and other installations are visible against blue sky. 50 megapixel image taken with Canon EOS 5Ds, digital blending technique, long exposure with tripod.
Bim | E+ | Getty Images
Industrial production in the euro zone fell 1.1% year-on-year during August, outweighing the 0.1% dip expected by analysts in a Reuters poll.
Industrial output was down 0.5% month-by-month, according to Eurostat, the EU's statistical office, lagging analyst forecasts of a flat print.
"For the third month in a row, industrial production declined in the eurozone," said Bert Colijn, Chief Economist, Netherlands at ING.
"While manufacturers remain upbeat about output, production data paints a less rosy picture. Industry may not be immune to higher energy prices and global uncertainty after all."
— Hugh Leask
8 Hours Ago
Ericsson shares surge following earnings beat
Rafael Henrique | Lightrocket | Getty Images
Shares in Ericsson surged in morning trade after the Swedish multinational telecoms mainstay reported better-than-expected third-quarter earnings.
Net sales for the three months ended Sept. 30 reached 59.5 billion Swedish krona ($5.91 billion), a 6% rise year-on-year and a 13% increase from the previous quarter.
Ericsson's adjusted earnings before interest, taxes and amortization were 10.1 billion Swedish krona, beating consensus forecasts of 7.87 billion.
The company moved to the top of Europe's benchmark Stoxx 600, with its shares up about 7.5% by 8:55 a.m. in London (3:55 a.m. E.T.).
Ericsson.
In a statement, Per Narvinger, president and CEO, said the results come amid a challenging environment, adding that an overhaul of the company's operating structure "will strengthen our customer focus and drive further efficiencies over time."
— Hugh Leask
8 Hours Ago
Asia markets close sharply lower
Asia-Pacific markets fell Thursday, with Korean stocks leading declines.
South Korea's Kospi plunged 7.57% to 5,554.22, dragged by chip heavyweights SK Hynix and Samsung Electronics, which fell more than 11% and nearly 10%, respectively. The small-cap Kosdaq lost 7.65% to end the trading day at 760.82.
Japan's Nikkei 225 lost 4.9% to 64,425.95, while the Topix fell 2.38% to 3,999.34.
The CSI 300 fell 1.23% to 4,166.01, while Hong Kong's Hang Seng was down more than 1% in its last hour of trading.
Australia's S&P/ASX 200 ended flat at 8,719.7.
— Lee Ying Shan
9 Hours Ago
European stocks mixed in early trade
Europe's stock markets were choppy in early trade, with regional sectors and major bourses mixed.
The pan-European Stoxx 600 was 0.43% lower shortly after 8:05 a.m. in London (3:05 a.m. E.T.)
Technology stocks led losses, tumbling 3.32%, followed closely by basic resources, which dropped 3.27%. Industrial goods were down 1.94%. In contrast, telecoms advanced 1.78%, leading gains, with household goods companies rising 1.58%.
The continent's main bourses were mixed. In London, the U.K. FTSE 100 added 0.19%, while in Paris, the CAC 40 was hovering just above the flatline. Germany's DAX was down 0.48% in Frankfurt, with the Italian FTSE MIB up 0.30%.
— Hugh Leask
9 Hours Ago
UK economy grew 0.1% in August, beating expectations
Commuters cross London Bridge in London, England.
Peter Summers | Getty Images News | Getty Images
The U.K. economy grew by a better-than-expected 0.1% in the month to August, beating the 0.1% fall that had been forecast by economists polled by Reuters.
Growth in production offset weak output in services and construction.
The British pound jumped 0.4% against the U.S. dollar following the release. Yields U.K. government bonds — known as gilts — fell across the curve.
— Chloe Taylor
9 Hours Ago
Europe’s stock markets set to open lower
The City of London financial district at sunrise.
Alexander Spatari | Moment | Getty Images
Stoxx 50 futures were 0.9% lower as European stock markets were expected to start Thursday's session in the red.
In the U.K., FTSE 100 futures were almost 0.1% lower, while in France, the CAC 40 was down 0.48%. Germany's DAX was seen opening some 0.39% in the red, with the Italian FTSE MIB off by 0.51%.
— Hugh Leask
10 Hours Ago
European chipmakers move lower in premarket trading
European chipmakers followed their Asian counterparts into the red ahead of Thursday's market open.
Dutch semiconductor giant ASML was down 1.52% in premarket trading, while Infineon Technologies shed 2.32%. Germany's Aixtron and SUSS MicroTec were also down 2.8% and 3.5%, respectively.
The moves follow a sharp retreat among Asian chipmakers on Thursday, which in turn tracked losses on Wall Street during the previous session amid rising concerns over AI financing and further Federal Reserve rate hikes.
— Hugh Leask
12 Hours Ago
Oil falls as investors assess Mideast tensions, International Energy Agency's report
Oil fell Thursday as traders assessed potential supply disruptions following attacks on ships passing through the Strait of Hormuz, while digesting the International Energy Agency's latest monthly report on the outlook of the oil market.
Futures for international benchmark Brent crude for December delivery dropped 1.66% to $104.31 a barrel. U.S. West Texas Intermediate futures for November fell 1.09% to $94.05 per barrel.
A Singapore registered ship was sunk in the critical Strait of Hormuz, which raised worries of a prolonged Mideast conflict. "Such attacks are unprovoked, unjustifiable and a breach of international law," the Singapore maritime authority said in a statement Wednesday.
Iran, meanwhile, has said it is "counting the moments" until it can start striking U.S. warships.
The International Energy Agency in its oil report for October out Wednesday cautioned that constraints on diesel markets could continue well into the next year, with fresh attacks on Saudi Arabia threatening to derail a recovery in oil supply.
— Justina Lee
14 Hours Ago
SK Hynix shares plunge 10% amid Asia tech rout as AI funding worries mount
A sell-off in global technology hardware stocks deepened Thursday, with Asian chipmakers tracking Wall Street losses as concerns over further Federal Reserve interest rate hikes, financing of artificial intelligence investments weigh on sentiment.
South Korean chip giant SK Hynix plunged over 10%, while rival Samsung Electronics fell 7.1%. Other South Korean chip-related stocks also came under pressure. LG Innotek sank 8.1%, Seoul Semiconductor shed 7.7% and Samsung SDI declined 6.8%.
In Japan, technology investment giant SoftBank Group tumbled 7.9%. Semiconductor testing equipment maker Advantest dropped 6.9%, while chipmaking equipment supplier Tokyo Electron lost 5.4%. Renesas Electronics declined 5.4%.
— Lee Ying Shan
16 Hours Ago
South Korea's Kospi plunges over 6% as Asia-Pacific markets tumble
Asia-Pacific markets fell Thursday, with Korean stocks leading declines.
South Korea's Kospi declined 6.1% at the open, while the small-cap Kosdaq Index fell 5.7%. Index heavy weights SK Hynix and Samsung Electronics lost 9% and 7%, respectively.
Japan's Nikkei 225 lost 3.2%, while the Topix fell 1.8%.
Australia's S&P/ASX 200 was down 0.71%.
— Lee Ying Shan
16 Hours Ago
Asia markets set to track Wall Street decline as inflation data stokes rate hike fears
Asia-Pacific markets were set to fall Thursday, tracking losses on Wall Street as hotter-than-expected U.S. inflation data fuels concerns that the Federal Reserve could raise interest rates more aggressively.
Escalating attackson commercial vessels in the Strait of Hormuz have also dented sentiment, as they add to uncertainty around the Middle East conflict, clouding the outlook for energy supplies.
Futures for Hong Kong'sHang Seng index stood at 24,074, lower than the index's last close of 24,314.17.
Japan's Nikkei 225 was also set to fall at open, with its Chicago and Osaka futures contracts last at 66,365 and 66,480, respectively, compared with the index's previous close of 67,744.29.
Australia's S&P/ASX 200 was down 0.85% in its first hour of trade.
— Lee Ying Shan
18 Hours Ago
Rocket Lab announces launch delay; shares dip in after hours
Rocket Lab shares slipped in extended trading after the company pushed back the launch date of its Neutron rocket to 2027.
Shares last traded lower by about 7%.
Rocket Lab in the past day
The company recently identified an issue with the manufacturing process on one of its propellant domes, according to a Rocket Lab video that shared details on the launch delay.
Considering the length of time it would take to build a new dome, as well as to investigate and resolve the manufacturing issue, the company pushed Neutron's first launch date into the new year, according to the video.
— Darla Mercado
18 Hours Ago
CoreWeave is lower after hours following 15% plunge
CoreWeave shares were lower by 0.6% after the bell following a sharp pullback for the company's stock and bonds on fears some tech companies are borrowing too much for AI.
The neocloud name nosedived 15.5%, while yields on its debt jumped. CEO Mike Intrator dismissed the market moves in a memo obtained by CNBC.
"When you are building a new type of technology company there will be periods of time when the market misunderstands and acts irrationally," he wrote. "We are confident in our backlog which more than supports all of our debt obligations."
— Michelle Fox
18 Hours Ago
