Trending
Market Update
Source: Newsmaker.id
Wall Street closed lower on Friday (October 23) as a sell-off in technology stocks spread to other sectors. The Dow Jones fell 1.2%, the S&P 500 weakened by 0.5%, and the Nasdaq corrected by 0.2%. Market pressure intensified after U.S. oil prices breached the US$100-per-barrel mark once again, amid growing concerns over a potential escalation in the U.S.-Iran conflict.
Defensive sectors—such as consumer staples, utilities, and healthcare—also faced pressure. Shares of American Express dropped more than 3% following the announcement of a 5% reduction in its global workforce, a move intended to prepare the company for developments in AI. Caterpillar and Goldman Sachs also saw declines, further weighing on the Dow Jones.
Meanwhile, investors remain focused on concerns regarding the significant debt financing required for the construction of AI data centers. The yield on the 10-year U.S. Treasury note climbed back toward 5%, having dipped below that level the previous day. This has prompted investors to pay closer attention to how rising borrowing costs might impact the valuations of technology companies.
Oil prices added further pressure to the stock market. WTI crude surged 3.8% to US$103.27 per barrel, while Brent crude rose 3.1% to US$116.72—its highest closing level since April. This spike followed reports of potential new attacks by the U.S. and Israel against Iran, with Tehran signaling its readiness to retaliate.
On a weekly basis, the S&P 500 fell 0.5% and the Nasdaq weakened by 0.7%, while the Dow Jones managed a 0.4% gain. Future market movements will be heavily influenced by developments in the Middle East conflict, oil prices, the trajectory of Treasury yields, and the ability of technology stocks to sustain their performance amid concerns over the costs of AI-related investments.
Source: Newsmaker.id