AI stocks ease selling pressure, investors await signals from Anthropic.
(GLO) - Selling pressure on AI stocks eased in the US on October 23, as investors focused on Anthropic's planned initial public offering (IPO) and upcoming earnings reports from major technology companies.
Anthropic is expected to release documents soon explaining how its business works, its financial situation, and its plans to sell shares to the public for the first time.
When trading ended on October 23, the Nasdaq Composite fell 0.21% to 25,955.34 points. This was a much smaller loss than in the previous session. Some technology stocks recovered. Microsoft rose slightly, Micron Technology gained nearly 3%, and AMD rose nearly 2%.
However, selling pressure spread to other sectors, and the overall market continued to fall. The S&P 500 dropped 0.52% to 7,623.68 points. The Dow Jones fell 652.82 points, or 1.23%, to 52,215.16 points.
Stocks in essential consumer goods, utilities, and healthcare all fell. For the week, the S&P 500 dropped 0.5%, the Nasdaq fell 0.7%, while the Dow Jones rose 0.4%.
In the earlier trading session on October 22, the Nasdaq fell 2.6% and the S&P 500 dropped 1.21%. Shares of Meta Platforms fell about 7%, even though the company's revenue for the third quarter was higher than expected.
Meta's plan to create another type of stock to raise money for investment has made shareholders more worried about the cost of expanding its AI infrastructure.
Concerns about how much money companies need to invest and whether they can make enough profit continue to shape the market.
Investors are worried that borrowing money to build data centers and buy AI chips is becoming more expensive. They also fear that many technology companies have stock prices that are too high compared with the profits they may earn.
In the credit market, the cost of insurance against the risk that large AI companies might fail to repay their debts generally fell slightly on October 23, after rising in the previous trading session.
However, the weaker performance of infrastructure companies such as CoreWeave continues to raise concerns about whether these companies will be able to get the money they need and how much future financing will cost.