Weekday edition
Intel's weak forecast, Iran war comments, and Eli Lilly's record
Chip stocks followed Intel down, and that slide may reach tech funds and index funds.
At Friday’s close: S&P 500 −1.82%, Nasdaq-100 −3.46%, Dow −1.09%
Intel tumbles after weak outlook pulls chip stocks lower
Intel Corp. (INTC) tumbled 28.6% on Friday after the chipmaker gave a weak fourth-quarter outlook. Intel lost $130 billion in market value. Other chip stocks followed it down. Advanced Micro Devices Inc. (AMD) tumbled 10.9%, Broadcom Inc. (AVGO) fell 5.5% and Nvidia Corp. (NVDA) fell 4.2%.
Chipmakers dragged the wider market down. The technology sector fund (XLK) tumbled 4.9%, the Nasdaq-100 tumbled 3.5% and the S&P 500 slid 1.8%. Taiwan Semiconductor Manufacturing Co. (TSM) tumbled 5.9%. Reports said Nvidia, Intel, AMD, TSMC and Broadcom accounted for most of the chip sector's lost value. Intel slid a further 1.3% in after-hours trading.
For readers
What it means for you: Savers in an S&P 500 index fund own Nvidia, Broadcom, AMD and Intel, each in proportion to its size. Nvidia alone is valued at $4.9 trillion. A sell-off across the chip sector reaches such funds further than one company's warning would. Apple's results after today's close may be the next signal for their biggest holdings.
Read the full story, INTC price history and analyst ratings, AMD price history and analyst ratings
Markets
Friday’s close
| Market | Level | Change |
|---|---|---|
| S&P 500 | 7,580.07 | −1.82% |
| Nasdaq-100 | 28,384.85 | −3.46% |
| Dow | 51,770.31 | −1.09% |
| 10-Yr | 4.94% | −4 bp |
| Bitcoin (24 hr)As of this edition | $77,954 | −0.03% |
The day ahead
Monday’s setup
Apple reports results after the close. It is an early test for big technology shares after Intel's weak outlook set off a chip sell-off and the Nasdaq-100 tumbled 3.5% on Friday.
After close Apple earnings. Results could show Apple shareholders how one of the largest technology companies is faring after Friday's broad sell-off in technology shares.
TBD Construction Spending (Construction Put in Place), September. This report tracks monthly spending on homes, offices and public works; a stronger reading could point to steady building demand, while a weaker one could hint at slowing activity.
TBD Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS). This Federal Reserve survey shows whether banks are tightening or easing lending rules; tighter standards could make mortgages, credit cards and business loans harder to get.
After hours Strategy. Shares jumped 1.2% in late trading, having tumbled 7.8% during Friday's session; separately, Kaizen Research said in a report that Bitcoin may have already bottomed.
After hours Coinbase Global. Shares jumped 1.2% in late trading; during Friday's session they tumbled 10.6% as crypto exchange stocks fell after a reported hack at Binance.
If you own
Intel shares tumbled 28.6%, and the company lost $130 billion in market value, leaving it worth $330 billion. Most broad index funds hold Intel, and their holders could feel part of that drop too.
Technology sector funds tumbled 4.9%, a far bigger daily swing than the group usually makes. Savers with a large slice in these funds may see their balances move more sharply than a broad index fund's.
Sector funds split widely. Energy funds did best, jumping 1.9%, and technology funds did worst, tumbling 4.9%. A portfolio spread across sectors could have seen gains in some areas offset part of the losses in others.
Tech funds tracking the Nasdaq-100 fell with the index, which tumbled 3.5% and closed at 28,384.85. A daily move that large could show up clearly in a retirement account weighted toward technology companies.
Need to know
Top stories
- 1
Trump says Iran war will end soon, with or without a deal. President Trump said Sunday the U.S. has already won in Iran. He said the war will end soon, either through a deal with Tehran or on its own. Stock futures rose and oil prices fell in Sunday evening trading, according to reports. The comments came ahead of Tuesday's midterm elections. Lower oil prices could ease fuel costs, though much may depend on whether a deal emerges. Read more
- 2
Health care · +3.19% Eli Lilly rallies to a record on weight-loss drug sales. Eli Lilly shares rose 3.2% on Friday, closing at a record $1,417.54. The drugmaker beat third-quarter estimates on sales of Mounjaro and Zepbound, its diabetes and weight-loss drugs. It also raised its full-year revenue forecast, and analysts lifted their price targets. The company added $41 billion in market value on the day. Read more
- 3
Energy · +2.16% ExxonMobil jumps to a 52-week high on refining squeeze. ExxonMobil shares jumped 2.2% on Friday to a 52-week high. The gain came on a day the broader market fell. The oil company reported strong third-quarter results and raised its dividend. It cited a global refining squeeze tied to Middle East supply disruptions and Russian refinery outages. CEO Darren Woods said he sees no quick fix for those disruptions, which could keep fuel margins high. Read more
AI corner
Three changes that matter
Topics: Startups, Deals
OpenAI raises less than it sought as its valuation falls short of target
OpenAI raised less money than it sought, at a lower valuation than it targeted, according to reports, which could signal more caution among backers of AI startups.
Topics: Startups, Deals
Blackstone warns Anthropic may get a junk credit rating after listing
A junk rating, meaning below investment grade, could raise Anthropic's borrowing costs as it pays for chips, Blackstone told investors, according to reports.
Topics: Energy
Dominion Energy beats quarterly estimates as data-center demand keeps growing
The utility said data-center demand kept rising, a sign that the power needs of AI could keep supporting some electricity companies even as chip stocks fell.
How it works
Trading after the close
After-hours moves are thin and fragile. After-hours trading happens once the regular session closes for the day. Far fewer buyers and sellers take part. A handful of large orders can push a price further than it would move during the day. Those moves often shrink or reverse when the full market opens. In today's chip story, AMD rose 0.7% after hours following Friday's steep daytime drop, on light trading. The pattern tends to recur around earnings reports, which companies often release after the close.
Coming up
Job Openings and Labor Turnover Survey, September. Job openings, hires and quits, a read on how tight the labor market is.
AMD earnings. Results are due after the closing bell.
Employment Situation (jobs report), October. The monthly jobs report: hiring, the unemployment rate and wages.
The close
The big picture. October ended with its losses packed into one corner of the market. Technology selling left the Nasdaq-100 down 6.7% for the month. The Dow gained 1.7%. On Friday, energy, consumer staples, utilities and health care funds still gained. Bond prices rose, and the 10-year Treasury yield fell to 4.94%. The losses were concentrated rather than broad.
On the calendar. The October inflation report arrives Tuesday, Nov. 10, 8:30 a.m. ET. It could shape the Fed's next rate decision, which may sway what cash accounts pay and what variable-rate loans cost. Before it, the University of Michigan survey on Friday, Nov. 6, shows what households expect prices to do.
Not investment advice.