Home · Business · Oct 22 archive
US Stocks Fall as Nasdaq Drops Over 2% Amid AI Cost Worries
Confirmed
In Short: The US stock market opened lower on Wednesday, September 23, with the Nasdaq Composite leading the decline, falling 2.7% according to Reuters and The Lufkin Daily News.
The US stock market opened lower on Wednesday, September 23, with the Nasdaq Composite leading the decline, falling 2.7% according to Reuters and The Lufkin Daily News. The Dow Jones Industrial Average and the S&P 500 also saw declines, though the extent varied between reports.
Reuters and The Lufkin Daily News reported that the Nasdaq Composite opened 30.8 points lower, or 0.11%, at 27,213.52. In contrast, Businesstimes (Singapore) reported a different opening figure for the Nasdaq Composite, showing a rise of 95.3 points, or 0.36%, to 26,892.796. Despite these discrepancies, both reports agreed that the Nasdaq Composite was under pressure.
The decline in the Nasdaq was attributed to concerns over the costs associated with artificial intelligence (AI) adoption. According to The Lufkin Daily News, investors are questioning the return on investment for AI-related stocks, with some fearing potential government restrictions.
Proactiveinvestors (United Kingdom) reported that the Dow Jones Industrial Average slipped 0.2%, the S&P 500 was little changed, and the Nasdaq Composite edged up 0.2%. This differs from the reports by Reuters and The Lufkin Daily News, which indicated a more significant drop for the Nasdaq.
Eurasiabusinessnews reported that despite the retreat in borrowing costs and enthusiasm for AI, the Nasdaq's record close was supported by strong earnings from major tech companies like Nvidia and Microsoft. This contradicts the more pessimistic view presented by Reuters and The Lufkin Daily News.
The Lufkin Daily News quoted Oliver Pursche, senior vice president at Wealthspire Advisors, who noted that investors are hypersensitive around earnings for AI-related stocks and that tech CEOs cannot afford to be left behind. Pursche also mentioned the potential for political and social backlash against AI adoption.
The reports from Reuters and The Lufkin Daily News highlighted the impact of rising crude prices and government bond yields on investor sentiment. Reuters noted that higher energy prices can add to inflation concerns, while rising Treasury yields can affect borrowing costs and the relative appeal of equities.
In a separate development, Qz reported that the smart ring maker Oura had postponed its planned initial public offering on the Nasdaq, citing uncertainty in the IPO market despite strong demand. CEO Tom Hale stated that the company aims to deliver an extraordinary IPO for its employees and investors and has the luxury of choosing its moment.
Despite the conflicting figures and perspectives, the reports agreed that the Nasdaq Composite was under significant pressure, driven by concerns over the costs and potential regulatory hurdles of AI adoption.
What this adds
The conflicting figures reported by different outlets highlight the volatility and complexity of the stock market, particularly in the tech sector. The reports agree on the overall downward trend of the Nasdaq Composite and the underlying concerns about AI costs and regulatory risks.
Background
Wall Street is a street in the Financial District of Lower Manhattan in New York City. It runs eight city blocks between Broadway in the west and South Street and the East River in the east with a length of just under 2,000 feet.
What's confirmed
- The US stock market opened lower on Wednesday, September 23, with the Nasdaq Composite leading the decline, falling 2.7% according to Reuters and The Lufkin Daily News. The Dow Jones Industrial Average and the S&P 500 also saw declines, though the extent varied between reports.
- Reuters and The Lufkin Daily News reported that the Nasdaq Composite opened 30.8 points lower, or 0.11%, at 27,213.52. In contrast, Businesstimes (Singapore) reported a different opening figure for the Nasdaq Composite, showing a rise of 95.3 points, or 0.36%, to 26,892.796. Despite these discrepancies, both reports agreed that the Nasdaq Composite was under pressure.
- The decline in the Nasdaq was attributed to concerns over the costs associated with artificial intelligence (AI) adoption. According to The Lufkin Daily News, investors are questioning the return on investment for AI-related stocks, with some fearing potential government restrictions.
- Proactiveinvestors (United Kingdom) reported that the Dow Jones Industrial Average slipped 0.2%, the S&P 500 was little changed, and the Nasdaq Composite edged up 0.2%. This differs from the reports by Reuters and The Lufkin Daily News, which indicated a more significant drop for the Nasdaq.
- Eurasiabusinessnews reported that despite the retreat in borrowing costs and enthusiasm for AI, the Nasdaq's record close was supported by strong earnings from major tech companies like Nvidia and Microsoft. This contradicts the more pessimistic view presented by Reuters and The Lufkin Daily News.
- The Lufkin Daily News quoted Oliver Pursche, senior vice president at Wealthspire Advisors, who noted that investors are hypersensitive around earnings for AI-related stocks and that tech CEOs cannot afford to be left behind. Pursche also mentioned the potential for political and social backlash against AI adoption.
- The reports from Reuters and The Lufkin Daily News highlighted the impact of rising crude prices and government bond yields on investor sentiment. Reuters noted that higher energy prices can add to inflation concerns, while rising Treasury yields can affect borrowing costs and the relative appeal of equities.
- In a separate development, Qz reported that the smart ring maker Oura had postponed its planned initial public offering on the Nasdaq, citing uncertainty in the IPO market despite strong demand. CEO Tom Hale stated that the company aims to deliver an extraordinary IPO for its employees and investors and has the luxury of choosing its moment.
- Despite the conflicting figures and perspectives, the reports agreed that the Nasdaq Composite was under significant pressure, driven by concerns over the costs and potential regulatory hurdles of AI adoption.
What's still developing
- REUTERS/Shannon Stapleton A screen displays trading information outside the Nasdaq Market site in New York City, US, October 15, 2026.
- REUTERS/Shannon Stapleton All three major US stock indexes were lower, with the tech-laden Nasdaq, weighed down by microchips, falling 2.7% following a spate of high-profile AI-related earnings results.
- "From an investor's perspective, we don't know what the (return on investment) is going to be or whether governments, whether on a local, state, or federal level, might step in with restrictions." On the geopolitical stage, Iran-backed Houthis launched new strikes against Saudi targets, sending crude prices to a five-month high.
- The decline followed a record-high close in the previous session, when technology stocks helped push the Nasdaq higher.
- Dow Jones and S&P 500 futures edged into the green, while Nasdaq-100 contracts rose 0.2%.
- The retreat in borrowing costs, combined with continuing enthusiasm for artificial intelligence and expectations for strong corporate earnings, helped sustain Wall Street’s rally despite oil prices remaining near $100 a barrel.reuters+1 The S&P 500 gained about 0.6% to close near 7,819, marking its first record closing high since August.
- But investors have so far treated strong earnings expectations and AI demand as powerful enough to offset some of the effect of higher borrowing costs.reuters+1 Andrew Hecht, a market analyst, described the simultaneous rise in equities and interest rates as a possible shift in the traditional relationship between bonds and stocks.
- "In the meantime, we will execute against the opportunities ahead."