Amex Earnings Cap Off a Volatile Week 23/10/2026
Market Wrap
U.S. stocks fell sharply Thursday as renewed concerns over artificial intelligence spending triggered a technology selloff, while escalating geopolitical tensions pushed oil prices higher.
The Nasdaq Composite plunged 2.6%, its worst session since June, while the S&P 500 declined 1.2%, marking its steepest drop since July. The Dow Jones Industrial Average bucked the trend, closing marginally higher.
Technology stocks led the losses, with the sector falling approximately 3%. Nvidia (NVDA) dropped 4.4%, Alphabet (GOOGL) lost 3.2%, and Advanced Micro Devices (AMD) tumbled 8.1% as investors questioned the sustainability of AI infrastructure spending.
Meta Platforms (META) slid roughly 7% despite beating revenue expectations and issuing upbeat guidance, as concerns over aggressive capital expenditures overshadowed its results.
CoreWeave (CRWV) plunged 10% amid persistent financing concerns. Nvidia CEO Jensen Huang acknowledged exceptionally strong demand for neocloud computing but warned that limited access to capital remains a major obstacle to growth.
Meanwhile, Brent crude surged 4% to $113.17 a barrel following reports of potential renewed U.S. and Israeli strikes against Iran after November's midterm elections. Rising geopolitical risks and the technology selloff pushed the 10-year Treasury yield below 5%, its lowest level in nearly a month.
Friday's focus shifts to the final University of Michigan consumer sentiment reading, offering fresh insight into household confidence and inflation expectations.
With AI valuations under pressure and geopolitical uncertainty rising, investors will be watching whether the selloff extends into the weekly close.
AI Selloff Exposes Growing Divide Across Wall Street
Wall Street's technology selloff exposed a widening market divide Thursday, as artificial intelligence stocks plunged despite gains across most S&P 500 companies.
The S&P 500 fell 1.2%, its worst session since July, even as more than 300 of its constituents finished higher. The divergence between the index and its individual stocks was the sharpest since January 2025, according to Dow Jones Market Data.
Semiconductor stocks led the decline, with the PHLX Semiconductor Index (SOX) plunging 6.7%. The benchmark has now fallen more than 26% from its June peak, placing the sector firmly in bear-market territory.
Meanwhile, investors rotated into defensive sectors. General Mills (GIS) surged 8%, while Campbell's (CPB) gained nearly 9%, highlighting growing demand for companies outside the AI trade.
The imbalance reflects the heavy concentration of major indexes, with the 10 largest S&P 500 companies accounting for roughly 40% of its market capitalization. Weakness in a handful of technology giants can therefore overshadow broader market gains.
Institutional investors have also accelerated the rotation, with hedge funds reducing leverage and technology exposure. Meanwhile, the 10-year Treasury yield recorded its sharpest daily decline since the Silicon Valley Bank collapse as investors sought safer assets.
While some strategists view the rotation as a healthy redistribution of capital, others warn that extreme market divergence could eventually trigger a broader selloff.
With AI valuations under pressure and market leadership shifting rapidly, investors face growing uncertainty heading into the weekly close.
Stocks on the Move
- Deckers Outdoor (DECK): Shares dropped approximately 7% after the footwear maker reported fiscal second-quarter revenue of $1.48 billion, missing expectations of $1.51 billion. Sales at both Hoka and UGG disappointed, while full-year revenue guidance of $5.7 billion–$5.73 billion fell short of the $5.88 billion consensus.
- Western Digital (WDC): Shares declined 6% amid a broader selloff in AI-related stocks, despite stronger-than-expected fiscal first-quarter results. Adjusted earnings reached $4.64 per share on revenue of $4.38 billion, beating estimates of $4.09 per share and $4.14 billion.
- VeriSign (VRSN): Shares fell nearly 5% after the domain registry operator reported third-quarter earnings of $2.35 per share, missing analysts' expectations of $2.46.
- Bloom Energy (BE): Shares slipped 5% despite reporting third-quarter adjusted earnings of $0.94 per share on revenue of $1.24 billion, exceeding forecasts of $0.68 per share and $1.06 billion. Full-year revenue and earnings guidance also surpassed expectations.
- Comfort Systems USA (FIX): Shares declined 5% after the HVAC services provider announced that CFO Bill George plans to retire following the filing of its annual report. The company separately reported third-quarter results that exceeded analysts' estimates.
Watchlist: INTC, CRWV, MU, TSLA, SPCX, MSTR, XOM, BE, WDC, MA, DECK, AXP, SLB, RCI, NEM, AMD, HON, NOK
Key Economic Events Today
Economic Data (EST)
- 09:45 AM — USD Flash Manufacturing PMI
- 09:45 AM — USD Flash Services PMI
- 10:00 AM — USD Consumer Sentiment
- 10:00 AM — USD Inflation Expectations
Earnings
Before Market Open: American Express Company (AXP), SLB Limited (SLB), Infosys Limited (INFY), Rogers Communications (RCI)
