S&P 500 declines for a third day as once-hot AI play Oracle falls, yields increase: Live updates
作者：Sean Conlon,Pia Singh
Traders work on the floor of the New York Stock Exchange (NYSE) on June 18, 2025 in New York City.
Spencer Platt | Getty Images
The S&P 500 fell again on Thursday, bogged down by a further pullback in Oracle, as well as a jump in rates.
The broad market index dropped 0.4%, while the Nasdaq Composite slid 0.3%. The Dow Jones Industrial Average shed 86 points, or 0.2%.
Oracle slid 4%, putting the stock on track to post a third straight day of losses, as questions over the state of the artificial intelligence trade lingered. The market action appears to be reflecting concerns about record-high valuations and potentially risky circular relationships in the AI industry after some recent deals.
Through Wednesday's close, Oracle, which led the latest leg of the bull market, is off more than 10% from its recent high. Thursday's decline was partly driven by a sell rating issued in new coverage by Rothschild & Co. Redburn, which predicted a 40% pullback because the "market materially overestimates" how much Oracle's recent AI deals will boost the company's core cloud business.
"Oracle had just a massive run-up. Some giveback and softness is probably warranted with how quickly and how dramatically the market cap has exploded," said Keith Buchanan, senior portfolio manager at Globalt Investments. He also cited "some skepticism" pertaining to the company's explosive cloud infrastructure growth projections that it reported earlier this month.
"The magnitude of those orders is eye-catching, but if it's concentrated into very few orders from very few end markets, then of course there's a risk," he told CNBC.
A jump in yields added to the selling in tech shares, causing investors to take off some risk. The 10-year Treasury yield hit 4.2% after data on initial claims for unemployment insurance came in lower than expected.
First-time filings for jobless benefits were at a seasonally adjusted 218,000 for the week ended Sept. 20, the Labor Department said Thursday. That's below the 235,000 that economists polled by Dow Jones had estimated and 14,000 less than the previous period's revised initial unemployment claims, which had also eased after seeing a brief spike the week before that.
The solid jobs data as well as a strong upward revision in second-quarter gross domestic product to 3.8%, which could mean the Federal Reserve hesitates before cutting rates again, undermining a key catalyst for the bulls.
Investors are also cautious ahead of the personal consumption expenditures price index due Friday and are monitoring developments regarding a potential government shutdown. If the government were to shut down, that could mean mass firings in the federal government, as the Office of Management and Budget has said in a memo that agencies should prepare "reduction in force" plans, according to NBC News.
CarMax shares plunge on earnings miss
A view of a CarMax dealership on April 10, 2025 in Santa Rosa, California.
Justin Sullivan | Getty Images
CarMax shares tumbled more than 20% after missing Wall's Street's earnings expectations for the second quarter.
The used car retailer earned 64 cents per share on revenue of $6.59 billion. Analysts polled by FactSet had forecasted $1.04 in earnings per share and $7.01 billion, respectively.
If Thursday's slide holds through the closing, it would mark CarMax's worst day since September 2022. It would also be the stock's third worst day on record.
CarMax shares, 1-day
— Alex Harring
The path for equities is higher, UBS says
The path for the stock market is higher even if there is some near-term volatility around the interest rate outlook, according to UBS.
Indeed, the Wall Street firm expects the S&P 500 will reach 6,800 by June 2026 in its base case, while possibly hitting 7,500 in its bull case, as lower interest rates and the strength of artificial intelligence continues to power stocks.
"Any doubt over the Fed's future easing path could stoke volatility," the firm's Ulrike Hoffmann-Burchardi wrote on Thursday. "But we continue to believe that positive market fundamentals will likely drive equities higher in the coming months."
— Sarah Min
Wall Street's fear gauge rises in morning trading
The CBOE Volatility Index, also known as Wall Street's fear gauge, rose on Thursday as stocks pulled back.
The VIX was at 17.02, as of 10:08 a.m. ET. Meanwhile, all three major averages were in the red as Treasury yields gained on the heels of the latest economic data.
.VIX, 1-day
— Sean Conlon
Stocks start Thursday's session lower
Stocks traded down on Thursday morning.
The S&P 500 dropped 0.6%, while the Nasdaq Composite declined 0.9%. The Dow Jones Industrial Average also fell 140 points, or 0.3%.
— Sean Conlon
Stocks making premarket moves
The Oracle logo is displayed on a building at an Oracle campus on March 10, 2025 in Redwood Shores, California.
Justin Sullivan | Getty Images
Here are some of the names making moves before the bell:
Oracle — The database software company shed 3.7% as worries around the AI trade continue to drag the stock lower. Rothschild & Co Redburn initiated coverage of Oracle with a sell rating, saying the market is "materially" overestimating Oracle's contracted cloud revenues.
Transocean — Shares sank 16.5% after the offshore driller announced its plans to sell 125 million shares of the company at a price of $3.05, significantly lower than Wednesday's close of $3.64.
Opendoor Technologies — The stock gained 3.5% following trading firm Jane Street's disclosure of a 5.9% stake in the online real estate platform.
To see more premarket movers, read the full story here.
— Michelle Fox
Stock futures reach session lows as yields jump
Jobless claims drop to 218,000, less than expected
A jobseeker holds a Milk Bone brochure during a NYS Department Of Labor job fair at the Downtown Central Library in Buffalo, New York, US, on Wednesday, Aug. 27, 2025.
Lauren Petracca | Bloomberg | Getty Images
Initial claims for unemployment insurance were well below expectations last week, helping to douse caution at the Federal Reserve and elsewhere that the labor market is in danger.
First-time filings for the week ending Sept. 20 totaled a seasonally adjusted 218,000, down 14,000 from the prior week's upwardly revised figure and significantly less than the Dow Jones consensus estimate for 235,000, the Labor Department reported Thursday.
Read more here.
— Jeff Cox
European Commission opens probe into software giant SAP; shares fall
The European Commission launched an antitrust probe into German software behemoth SAP on Thursday over concerns around its practices in software support services.
The investigation will look into "whether SAP may have distorted competition in the aftermarket for maintenance and support services related to an on-premises type of software, licensed by SAP, used for the management of companies' business operations," according to the Commission.
SAP said in a statement Thursday that it believed its policies and actions were fully compliant with EU competition rules.
"However, we take the issues raised seriously and we are working closely with the EU Commission to resolve them," a spokesperson said. "We do not anticipate the engagement with the European Commission to result in material impacts on our financial performance."
SAP, 1-day
U.S. shares of the firm moved lower in premarket trading Thursday, losing more than 2%.
— Chloe Taylor, Ryan Browne, Sean Conlon
Barclays grows bullish on Nvidia, even amid recent pressure on the AI trade
Nvidia is poised to be a big winner in the AI arms race as dealmaking in the space heats up, which could catapult its stock price to new highs, according to Barclays.
The investment bank, which has an overweight rating on shares, raised its price target to $240 from $200. That implies upside of 35.6%.
"We see [deals] largely flowing into the NVDA P&L over the next 5+ years, moving numbers materially higher and making this the most attractive name in our space," analyst Tom O'Malley said in the note to clients dated Thursday.
CNBC Pro subscribers can read more here.
— Liz Napolitano
MoffettNathanson upgrades Chewy to buy
A logo for Chewy Inc. is displayed on the trading floor on the morning of the company's initial public offering at the New York Stock Exchange on June 14, 2019.
Andrew Kelly | Reuters
MoffettNathanson analyst Michael Morton raised his rating on Chewy to buy from neutral and lifted his price target to $48 from $33. The new target implies upside of 28% from Wednesday's close.
"Our conviction is grounded in a refreshed industry model for pet household formation. In early 2024, our industry model forecasted a recovery in customer additions, and we missed the upgrade opportunity," Morton wrote.
"We once again turn to the model to project U.S. pet household gross adds for 2025 to 2027. We walk away confident the industry has worked through its Covid pull forward and is on a sustained path of recovery with Chewy demonstrating an ability to meet or beat consensus forecasts on customer net additions through 2025 and 2026," he added.
Chewy shares rose more than 1% following the upgrade.
— Fred Imbert
Intel shares jump on report the chipmaker is seeking investment from Apple
Intel Corporation's headquarters in Santa Clara, California, on April 23, 2025.
David Paul Morris | Bloomberg | Getty Images
Intel shares gained 1.6% in after-hours trading on news that the chipmaker is in early-stage talks with Apple about securing an investment from the iPhone maker, Bloomberg reported, citing people familiar with the matter. Apple and Intel have discussed how to work more closely together, but the talks may not lead to an agreement, the report said.
A deal with Apple would come after Nvidia announced earlier this month that it will invest $5 billion in Intel as part of a deal to co-develop data center and PC chips. The U.S. government brokered a 10% stake in Intel in August as part of President Donald Trump's attempt to expand influence in the private sector.
Intel stock performance over the past year.
The Bloomberg report said, citing sources, that Intel also has reached out to other companies about possible investments and partnerships.
— Pia Singh
U.S. stock futures open little changed on Wednesday
关于《S&P 500 declines for a third day as once-hot AI play Oracle falls, yields increase: Live updates》的评论
暂无评论