US close: Stocks sharply lower as AI jitters deepen, oil prices surge

(Sharecast News) - Major indices closed sharply lower on Friday amid ongoing concerns that the artificial intelligence trade may be wavering and rising oil prices.

At the close, the Dow Jones Industrial Average was down 1.23% at 52,215.16, while the S&P 500 shed 0.52% to 7,623.68 and the Nasdaq Composite saw out the session 0.21% softer at 25,955.34.

The Dow opened 652.82 points lower on Friday, easily reversing modest gains recorded in the previous session.

Oil prices were in focus on Friday, with West Texas Intermediate futures up 3.82% at $103.27 a barrel, while Brent crude rose 3.14% to $116.72 per barrel following reports that the US and Israel were drawing up plans for renewed attacks on Iran.

Treasury yields also drew an amount of investor attention, with the yield on the benchmark 10-year note up more than four basis points at 4.999% as market participants grew increasingly cautious about large amounts of borrowing taking place to fund the construction of AI data centres.

On the macro front, US business activity cooled slightly in October, but both the manufacturing and services PMIs continued to signal some of the strongest growth seen in the past five years, even as sellingprice inflation accelerated to its fastest pace since August 2022. S&P Global's flash manufacturing PMI edged up to 56.0 from 55.9, a 53month high, while the manufacturing output index dipped to 55.8. In services, the business activity index eased to 57.9 from 58.8, and the composite output PMI slipped to 57.6 from 58.4, still pointing to the secondstrongest expansion since early 2022.

Elsewhere, consumer sentiment was little changed in October, according to the University of Michigan, slipping just 0.2% from September to 48 as firmer expectations were offset by a sharp drop in views of current conditions. The current conditions index fell 8.3% on the month, driven entirely by a steep deterioration in buying conditions for durable goods amid higher interest rates and mounting affordability concerns. Overall sentiment now sits 10% below yearago levels and 15% beneath February's reading, just before the Iran conflict. The expectations index improved 5.4% to 48.8, helped by stronger yearahead business conditions views, though respondents still judged the outlook to be materially weaker than last October.

In the corporate space, American Express posted a strong set of thirdquarter numbers, with net income rising to $3.7bn from $2.9bn a year earlier, while earnings per share climbed 31% to $5.42, up from $4.14 in the prioryear period. Excluding the previously announced gain from the sale of its stake in Global Business Travel Group - a $982m pretax benefit - adjusted net income came in at $3.2bn, or $4.68 per share. However, the stock traded lower after announcing that it was cutting 5% of its global workforce in order to "prepare for AI".

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Chevron Corp. (CVX) $233.21 2.88%

Dow Chemical Co. (DOW) $32.61 2.51%

Cisco Systems Inc. (CSCO) $106.50 0.60%

International Business Machines Corporation (CDI) (IBM) $253.56 0.58%

Boeing Co. (BA) $188.35 0.43%

Apple Inc. (AAPL) $347.73 0.28%

Amgen Inc. (AMGN) $439.26 0.04%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Dowdupont Inc. (DWDP) $0.00 0.00%

Walmart Inc. (WMT) $0.00 0.00%

Dow Jones - Fallers

American Express Co. (AXP) $313.22 -3.68%

Procter & Gamble Co. (PG) $161.02 -2.76%

Coca-Cola Co. (KO) $92.71 -2.76%

Nike Inc. (NKE) $37.30 -2.66%

Caterpillar Inc. (CAT) $687.00 -2.42%

Home Depot Inc. (HD) $319.83 -2.41%

Travelers Company Inc. (TRV) $398.28 -1.77%

Goldman Sachs Group Inc. (GS) $875.68 -1.75%

McDonald's Corp. (MCD) $248.46 -1.65%

Unitedhealth Group Inc. (UNH) $418.09 -1.62%

S&P 500 - Risers

Robert Half Inc. (RHI) $45.87 21.74%

Tractor Supply Company (TSCO) $33.42 9.91%

Crown Castle International (CCI) $85.97 9.06%

Schlumberger Ltd. (SLB) $53.06 7.08%

Sba Communications Corp. (SBAC) $184.75 6.81%

National Oilwell Varco Inc. (NOV) $19.76 5.33%

Halliburton Co. (HAL) $34.92 5.21%

Intuitive Surgical Inc. (ISRG) $452.29 5.09%

Helmerich & Payne Inc. (HP) $38.95 4.90%

Akamai Technologies Inc. (AKAM) $93.53 4.70%

S&P 500 - Fallers

LKQ Corporation (LKQ) $17.42 -19.28%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Globe Life Inc. (GL) $154.79 -8.09%

AT&T Inc. (T) $20.93 -7.96%

CBRE Group Inc (CBRE) $123.30 -6.05%

KLA-Tencor Corp. (KLAC) $145.61 -5.25%

Seagate Technology Plc (STX) $630.49 -5.13%

MGM Resorts International (MGM) $28.06 -4.88%

Dollar General Corp (DG) $132.69 -4.62%

Newmont Corporation (NEM) $108.87 -4.59%

Nasdaq 100 - Risers

Check Point Software Technologies Ltd. (CHKP) $159.03 8.31%

Intuitive Surgical Inc. (ISRG) $452.29 5.09%

Biogen Inc (BIIB) $250.69 4.14%

Skyworks Solutions Inc. (SWKS) $83.43 3.48%

Paychex Inc. (PAYX) $118.04 3.29%

Hasbro Inc (HAS) $117.44 3.28%

Gen Digital Inc. (GEN) $24.88 3.28%

Comcast Corp. (CMCSA) $22.69 2.95%

DENTSPLY Sirona Inc. (XRAY) $9.43 2.89%

Sirius XM Holdings Inc (SIRI) $27.63 2.75%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

T-Mobile Us, Inc. (TMUS) $146.54 -6.18%

KLA-Tencor Corp. (KLAC) $145.61 -5.25%

Seagate Technology Plc (STX) $630.49 -5.13%

Illumina Inc. (ILMN) $269.42 -4.20%

Amazon.Com Inc. (AMZN) $248.00 -3.71%

Western Digital Corp. (WDC) $343.67 -3.71%

Alphabet Inc. Class A (GOOGL) $320.21 -3.13%

Ross Stores Inc. (ROST) $229.30 -3.04%

Asml Holdings N.V. (ASML) $1,571.80 -3.03%