- Major U.S. stock indexes declined in midday trading as concerns over Artificial Intelligence valuations and high October layoffs weighed on investor sentiment.
- Tesla shares fell nearly 4% ahead of a key shareholder vote on CEO Elon Musk’s $1 trillion compensation plan.
- Qualcomm shares dropped over 4% after announcing it may lose Apple as a modem customer in the coming years.
- Snap stock surged more than 10% after better-than-expected Q3 results and news of a partnership with Perplexity AI.
- Layoffs in October reached 153,000, the highest for the month in 22 years, according to data from Challenger, Gray & Christmas.
U.S. stock markets saw broad declines during midday trading on Thursday, as investor worries intensified over the value of artificial intelligence companies and a surge in technology-sector layoffs. The pullback came as new data showed that U.S.-based employers cut over 153,000 jobs in October, a level not recorded for the month in over two decades, according to Challenger, Gray & Christmas.
The SPDR S&P 500 ETF (SPY) fell 1.23%, while the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, was down 1.95%. The SPDR Dow Jones Industrial Average ETF Trust (DIA) dropped by 1.07%.
Tesla stock lost nearly 4% ahead of the anticipated result from a pivotal shareholder vote deciding CEO Elon Musk’s proposed $1 trillion compensation plan. Shares of Tesla remain up 10% for the year to date.
Shares of Qualcomm dropped by over 4% after the company said it could lose Apple as a major customer for its modem business in the coming years. Details on the potential shift were reported by CNBC. Despite the decline, Qualcomm shares are up 13% year to date.
Snap rose more than 10% in midday trade. The company’s third-quarter results beat Wall Street forecasts with a reported loss of $0.06 per share, compared to an expected loss of $0.12 per share. Revenue reached $1.51 billion, slightly surpassing projections. Snap also announced a new partnership to integrate Perplexity AI’s search engine into the Snapchat application. Despite the rally, shares are still down 26% for the year.
Other notable movers included Duolingo, down over 27% after fourth-quarter EBITDA projections fell short of analyst estimates, as detailed by Barron’s. DoorDash fell nearly 16% following a mixed third-quarter report, with revenue slightly above estimates but earnings per share missing expectations.
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