US stocks opened mixed on Thursday, October 15, as a sell-off in technology shares extended for a second session, while hotter-than-expected wholesale inflation data added to concerns over the Federal Reserve’s policy outlook.
The S&P 500 fell 0.4% at the open, while the tech-heavy Nasdaq Composite declined more than 1%. The Dow Jones Industrial Average outperformed, rising 0.6%, as investors assessed persistent inflationary pressures alongside concerns over heavy borrowing and spending on artificial intelligence (AI) infrastructure.
Chip stocks extend losses
Semiconductor stocks led the declines, extending Wednesday’s sell-off amid concerns over AI-related valuations and spending. Micron Technology fell around 4%, while Advanced Micro Devices (AMD) dropped 5%. Sandisk declined 6%, and US-listed shares of South Korea’s SK Hynix lost 5%. South Korea’s Kospi index had fallen more than 7% overnight.
AI infrastructure company CoreWeave slid 7%, adding to a decline of more than 15% in the previous session. Investors have grown increasingly concerned about the company’s borrowing requirements to fund its AI expansion, with its corporate bond yields also surging.
According to CNBC, Anthropic’s revenue reached $16.8 billion in the third quarter, raising questions among some investors about whether growth in the AI sector is sufficient to justify elevated chipmaker valuations.
Wholesale inflation surges
Investors also weighed fresh inflation data that pointed to persistent price pressures. The September producer price index (PPI) rose 1.3% month on month and 6.3% year on year, marking the biggest increases on both measures since 2022.
The readings came in well above economists’ expectations of a 0.6% monthly increase and a 5.5% annual rise, according to a Dow Jones poll.
The stronger-than-expected data added to concerns that inflation could remain elevated, potentially complicating the Federal Reserve’s policy outlook. The S&P 500 and Nasdaq extended their losses from Wednesday, when hotter inflation data had already weighed on investor sentiment.
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