Market

October 8, U.S. stocks closed mixed after a sharp rotation out of semiconductors pulled the Nasdaq lower while defensive buying propped up the Dow. The Dow Jones Industrial Average edged up 0.10%, the S&P 500 slipped 0.47%, and the tech-heavy Nasdaq Composite fell 1.25%. Soaring Treasury yields and fresh angst over Middle East tensions pressured long-duration growth names, outweighing a resilient services-sector survey and cautious Fed speak.

Chipmakers led the slide as investors took profits following a torrid year-to-date rally. Micron Technology fell 4.79% after a downgrade on memory-chip pricing, while Intel lost 5.34%. Nvidia dropped 2.94% and AMD slid 3.90%, dragging the Philadelphia Semiconductor Index down nearly 4%. Broadcom fell 4.35% and Marvell Technology retreated 3.52%. Outside chips, Oracle sank 5.48% on concerns over cloud competition, and Amazon.com slid 2.25%. Bucking the trend, Apple gained 1.12% as supply-chain checks pointed to robust iPhone demand, and Palantir climbed 2.40% on a new defense contract.

Elsewhere, inverse and niche plays popped while several ADRs saw outsized swings. The Direxion Daily Semiconductors Bear 3x Shares jumped 10.24%, mirroring the chip selloff, while Xiao-I Corp surged 46.21% amid AI chatter and Smart Powerr spiked 63.45% on thin volume. Taiwan Semiconductor’s ADR fell 3.01% as export-control worries resurfaced, and Silicon Motion tumbled 8.36% following a bleak sales update. In education ADRs, Jianzhi Education soared 77.44%, contrasting a 10.83% drop for Reto Eco-solutions after a delayed filing.

News

Micron Technology cut outlook on weakening memory pricing. The chipmaker now expects fiscal Q1 revenue at the low end of its prior range and signaled excess inventory persists. Shares fell 4.79% as investors questioned the timing of a demand recovery.

Intel postponed Arizona fab expansion to conserve cash. Management said the delay will keep capex flexible amid an uncertain PC rebound. The decision amplified concerns about industry oversupply, sending the stock down 5.34%.

Palantir won $250 million U.S. Army AI contract. The multiyear deal to modernize battlefield analytics reinforces the company’s defense niche and helped its shares add 2.40% against a weak tech tape.

Apple suppliers reported stronger iPhone 16 build orders. Taiwanese assembler checks point to a 5% quarter-on-quarter production rise, underpinning Apple’s 1.12% advance and supporting the broader megacap complex.

Nvidia faced new U.S. export restrictions on China AI chips. Commerce Department rules tighten loopholes on high-end accelerators, fueling a 2.94% drop as traders reassessed near-term sales risk.

Oracle unveiled lower-priced cloud regions to chase AWS. Analysts warned the discount strategy could squeeze margins, contributing to the stock’s 5.48% fall and broader software weakness.

Bloom Energy disclosed SEC probe into revenue recognition. Management said it is cooperating fully; the clean-tech name slid 6.34% as regulatory overhang deepened.

Taiwan Semiconductor warned clients of potential U.S. sanctions backlog. The foundry giant said licenses may take longer under the updated export rules, nudging its ADR down 3.01% and pressuring the chip complex.

Direxion launched new reverse-split for SOXL ETF. The leverage product’s 10-for-1 action aims to stabilize trading after a 10.31% dive today, underscoring volatility in semiconductor bets.

Silicon Motion slashed Q3 guidance citing smartphone softness. Management now sees revenue contracting double-digits, sending the ADR 8.36% lower and highlighting weakness in consumer electronics demand.