LIVE MARKETS-Nasdaq slides as AI spending worries roil tech 

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NASDAQ SLIDES AS AI SPENDING WORRIES ROIL TECH

The Nasdaq Composite and S&P 500 sold off sharply on Thursday, with the Composite suffering its biggest one-day decline since early June as a fresh round of earnings from high-profile technology companies reignited concerns about the cost of competing in the AI race. Ongoing uncertainty surrounding the upcoming midterm elections also remained a headwind for sentiment.

The Nasdaq .IXIC led the retreat among the major indexes, falling 2.6% in its steepest drop in more than four months. The S&P 500 .SPX fell more than 1%, while the Dow .DJI eked out a positive close.

Yet the weakness wasn't as broad as the headline numbers might suggest. In fact, a majority of S&P 500 sectors finished higher, though investors clearly favored defensive areas of the market. Consumer staples .SPLRCS jumped 3.1%, making it the session's top-performing sector. Notably, the last time staples rallied more than 3% was in early April 2025, around the time the broader market was carving out an important low.

Technology .SPLRCT and communication services .SPLRCL were the clear laggards, with both sectors falling about 3%.

Beneath the surface, the market was telling several different stories at once. Semiconductor stocks bore the brunt of the selling pressure, sending the Philadelphia Semiconductor Index .SOX down 6.7% for its biggest decline since June 23. Gold and silver miners .XAU also endured a rough session, tumbling 5.5% for their largest drop since June 5.

What made that move noteworthy was that it came as the benchmark US 10-year Treasury yield slid back below 5% for the first time in roughly a month, a development that typically provides some support for interest-rate-sensitive and commodity-related assets.

Lower yields, however, did provide a boost elsewhere. The PHLX Housing Index .HGX surged 4.6% for its strongest daily gain since June 24, while regional banks .KRX and transports .DJT also outperformed, climbing 2.4% and 1.9%, respectively.

Here is a snapshot of where markets stood shortly after 4 p.m. ET.

(Terence Gabriel)

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