U.S. markets closed mostly lower on Thursday, following a sharp decline in technology stocks amid renewed concerns over debt-fueled spending on AI infrastructure. Investors also focused on next week’s two-day Federal Reserve meeting, at the conclusion of which the Fed is expected to announce its interest rate decision. Meanwhile, traders largely overlooked a Labor Department report showing that initial claims for U.S. unemployment benefits unexpectedly declined in the week ended October 17. The report said initial jobless claims fell to 194,000, a decrease of 6,000 from the previous week's revised level of 200,000.
On the sectoral front, semiconductor stocks were among the market’s worst performers, with the Philadelphia Semiconductor Index plunging 6.7% to its lowest closing level in nearly three months. A sharp drop in gold prices also weighed heavily on gold stocks, sending the NYSE Arca Gold Bugs Index tumbling 5.4%.
Nasdaq decreased by 693.99 points or 2.6 percent to 26,008.85 and S&P 500 fell by 93.74 points or 1.21 percent to 7,663.43, while Dow Jones Industrial Average increased by 11.89 points or 0.02 percent to 52,867.98.