US stocks opened lower on Friday as investors kept selling artificial intelligence names after one of the worst tech routs in months, while surging oil prices and fresh Middle East tensions added to the gloom.
At the opening bell, the Dow Jones Industrial Average fell 171.30 points, or 0.32%, to 52,696.70. The S&P 500 declined 26.20 points, or 0.34%, to 7,637.18, while the Nasdaq Composite dropped 114.90 points, or 0.44%, to 25,893.95, according to Reuters.
Thursday's tech wreck carries over
Friday's weakness followed a brutal Thursday session. The Nasdaq plunged 2.6% to 26,009 — its biggest daily fall since June — while the S&P 500 lost 1.2% to 7,663, its worst showing since July. The Philadelphia Semiconductor Index tumbled 6.7%, also its steepest drop since June, as investors questioned the enormous cash required to build out AI data centers.
Meta was at the center of the sell-off, sliding about 7% on Thursday despite beating earnings expectations. The company's accelerating AI investments came into focus, with capital expenditures potentially reaching $145 billion in 2026. Chipmakers and CoreWeave also faced heavy selling over financing concerns.
Oil near $115, telecoms hit by SpaceX reports
Brent crude pushed above $114 a barrel toward $115, near its highest since May, after fresh attacks on shipping in the Middle East. WTI crude rose about 1.6% to roughly $101 a barrel. Energy stocks were the session's bright spot, with the sector index hitting a record high.
Telecom giants were another drag. AT&T, Verizon and T-Mobile fell pre-market after Bloomberg reported that SpaceX is seeking access to around 80,000 US cell sites for a wireless carrier program. Tower owner Crown Castle jumped about 12% on the news.
What to watch
The 10-year Treasury yield hovered near 5%, the VIX sat around 19.6, and gold held near $4,037 an ounce. With the Bureau of Labor Statistics releasing nothing today, all eyes turn to next Wednesday's Federal Reserve decision on October 28, where oil-driven inflation risks could complicate the rate outlook.
This article is for information only and is not financial advice.
Sources: Reuters, Bloomberg, Sunday Guardian Live, Economic Times, Curve Ahead Market Strategies, Finnhub.
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