U.S. stock indexes saw mixed results this week as strong company earnings still could not compensate for falling technology stocks and rising oil prices.
On Monday, the Nasdaq composite rose 1.1%, the S&P 500 gained 0.4% and the Dow Jones Industrial Average slipped 0.1%. Technology stocks bounced back from the previous week’s losses. Nvidia rose 1.4% and steelmaker Cleveland-Cliffs jumped 16.3% after reporting a higher-than-expected quarterly profit.
On Tuesday, the Nasdaq slipped less than 0.1%, the S&P 500 rose 0.3% and the Dow climbed 1%. Equifax jumped 11.3% after reporting a larger-than-expected profit and Hasbro rose 11.2%.
Brent crude oil fell 0.7% to about $109 a barrel.
On Wednesday, the Nasdaq gained 1.1%, the S&P 500 added 0.6% and the Dow rose 0.7%. SpaceX reported $14.58 billion in third-quarter earnings, $12.72 billion above what analysts expected. Its shares rose 7.8%, helping lift other artificial intelligence stocks. Netflix fell 5.3% after its fourth-quarter revenue forecast fell short.
On Thursday, the Nasdaq dropped 2.6%, the S&P 500 fell 1.2% and the Dow edged up less than 0.1%. It was the S&P 500’s worst day since July.
Investors were worried that high interest rates would make it harder for technology companies to pay for their AI spending. Meta fell about 7% after a major AI investment led to its first cash outflow in more than a decade, meaning it spent more cash than it brought in.
Chipmakers also slid, with Advanced Micro Devices down more than 8% and an overall index of chip stocks down 6.7%. When borrowing costs increase, more companies that leverage debt to build data centers pay greater interest expenses.
On Friday, the Nasdaq slipped 0.2%, the S&P 500 lost 0.5% and the Dow fell 1.2%. Brent crude oil rose 3.1% to $116.72 per barrel, its highest price since April.
American Express dropped 3.7% after announcing its first major layoffs in years, even though its earnings beat expectations. Chevron rose 2.9% and ConocoPhillips gained 3.6% as energy companies earned more from higher oil prices.
Telecommunication stocks such as AT&T and T-Mobile also fell after SpaceX announced new investments in cell towers as part of its plan to start its own wireless network, challenging rivals.
Wall Street investors also remained concerned about AI, with Angelo Kourkafas, a strategist at Edward Jones, pointing to “the uncertainty around the timing of returns on those investments.”
For the week, the Nasdaq lost 0.7%, the S&P 500 fell 0.5% and the Dow rose 0.4%. It was the S&P 500’s second weekly loss in a row.
Looking ahead, Alphabet, Microsoft and Amazon will release earnings next week. The Federal Reserve will also announce its interest rate decision on Oct. 28. Investors expect the Fed to hold rates steady after raising them in September.
The Fed’s preferred inflation report comes out on Oct. 29. Analysts anticipate a 3.7% year-on-year price increase.
