Highlights
A selloff in AI and technology shares tanked the major indexes on Thursday even as the broader market was mostly better with rotation into defensive sectors and rate-sensitive cyclicals.
The Dow Jones industrial average recovered early losses to end unchanged but the S&P fell 1.2 percent, and the Nasdaq dropped 2.6 percent. Bond yields dropped in the flight from risk assets even while oil prices rose while the dollar was slightly down.
The market reacted badly to Meta’s quarterly results as the market hates the heavy capex spending and its borrowing plans, which played into wider concern that the AI trade has been overdone. Meanwhile, oil prices advanced on news of Houthi strikes against Saudi Arabia and comments from President Trump that underscored worry that renewed fighting is coming in the US-Iran war.