The Nasdaq Composite posted its steepest one-day drop since mid-August after OpenAI told investors its annualized revenue stood at $50 billion, well below the $68 billion figure reported last month, triggering a broad sell-off in AI-linked stocks. U.S. stock futures edged higher early Friday as traders looked ahead to Delta Air Lines earnings and fresh consumer sentiment data.
AI selloff drags Nasdaq to worst day since August
The Nasdaq Composite dropped more than 1% on Thursday, marking its biggest one-day loss since mid-August. It was the index's second straight down day after it had climbed to fresh all-time records earlier in the week.
Tech's troubles also dragged the S&P 500 down 0.5%, its second consecutive loss. The Dow Jones Industrial Average bucked the trend, however, ending the session slightly above flat. Week to date, the Dow and Nasdaq are both roughly flat, while the S&P 500 is on track for a 0.6% weekly gain.
Chipmakers and cloud providers take the brunt
The pressure traces back to OpenAI, which told investors it saw $50 billion in annualized revenue at the end of September, after a $68 billion figure had circulated widely last month. A person familiar with the matter said the earlier figure also included gross revenue from partners.
CoreWeave fell more than 7%. Oracle, Intel and Super Micro Computer each lost around 5%. AMD slid close to 4%. Nvidia shed almost 3%.
According to CNBC, Kristina Hooper, chief market strategist at Man Group, warned that further declines could spread: "we could see a real rout in AI-related names", she said, adding that such a run could sour investors.
Futures steady as investors await Delta earnings
Despite Thursday's rout, futures pointed to a steadier Friday. S&P 500 futures were up 0.3%. Nasdaq 100 futures added 0.49%. Dow futures advanced 105 points, or 0.2%.
Investors will next watch Delta Air Lines earnings before Friday's opening bell, alongside October consumer sentiment data due the same morning.
Source: CNBC
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