- Intel fourth-quarter revenue guidance came in well below consensus, and Amazon reported record cash burn tied to its AI infrastructure buildout.
- Semiconductor stocks fell broadly as investors questioned whether AI capex cycles would translate into sustainable earnings growth.
- Rising crude oil prices tied to reported tanker attacks near the Strait of Hormuz, plus a Q3 Core PCE reading of 2.5% versus 2.4% expected, kept inflation and the Federal Reserve rate path in focus.
- Consumer staples and healthcare rose as investors rotated out of technology and growth stocks.
- Capital.com analyst Daniela Hathorn said strong AI demand is no longer enough on its own to support tech stocks.
Quotes
“the message from investors is becoming clearer: strong AI demand is no longer enough on its own.”
“Amazon and Intel have now added to the uncertainty”