The S&P 500 Index fell 1.1%, ending its 53-session streak without a 1% decline—the longest such stretch since January 2020. The drop was driven by concerns over the sustainability of the artificial-intelligence trade and a hotter-than-expected consumer price report showing a 0.6% monthly increase in September, the fastest since April. Technology megacaps, which have fueled the four-year bull run, weakened, adding to risk-off sentiment.
Semiconductor stocks fell for a sixth straight day, down nearly 12% over that period. The Nasdaq 100 dropped 2%, its worst day since July, while the Magnificent Seven Index lost a similar amount, with Apple Inc. the only member to gain 0.5%. The Russell 2000 Index fell 1.9%, extending its August peak decline to 11%.
Worries intensified over corporate debt, as Core Weave Inc.’s unsecured 2032 debt traded below 80 cents on the dollar, signaling financial strain. Despite the selloff, the S&P 500 remains just 1.3% below its recent record high, and the VIX trades near 17, below the 20 stress threshold. Discretionary money managers, who have avoided the rally, may re-enter if selling continues.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing