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A targeted stock market crash occurred in the US stock market in October, in which technology and semiconductor stocks fell sharply. Intel and multi-chip stocks fell, but the S&P 500 fell only slightly, indicating funds were moving into other stocks.
Major US technology stocks were hit by the stock market crash in October, and semiconductor stocks were particularly badly hit. In contrast, the S&P 500 index only fell slightly on the monthly line, and nearly two-thirds of the component stocks also bucked the trend and closed higher, which suggests that funds are moving from technology stocks to other stocks, leading to a rise this year.wall Street “Terrible October” is different.
intel Amazon and other technology giants stoked concerns, and investors remained on the sidelines ahead of the U.S. midterm elections on Nov. 3 and the release of the nonfarm payrolls report next week. The three major US stock indices fell on the 30th (Friday). The Nasdaq Composite Index, which is dominated by technology stocks, fell 2.9% and is 7.8% behind the new closing high price reached on October 6.
Chip shares were the biggest losers, with Nvidia falling 4.2%.super micro (AMD) fell 10.9%, and Intel fell 28.6%, leaving the Philadelphia Semiconductor Index down 7.2%.
Over the past month, the Federal Reserve index fell more than 15% in October; The S&P 500 index fell slightly by 0.9% on the monthly line, but 72% of the constituent stocks were down for the entire month; The Dow Jones Industrial Average also closed in the red in October.
Baxi, senior vice president of Wealthspire Consulting in New York, said on the 30th: “Frankly, not only today, this week the market is worried about the future of artificial intelligence (AI), whether the investment can yield profits, and how quickly it will pay off.” However, he notes that companies that are well-run and meet the market’s ultra-high expectations tend to have excellent stock price performance.
Among all types of stocks, technology stocks performed the worst in October. S&P 500 technology stocks suffered their biggest monthly decline since March last year, and communications services stocks recorded their deepest monthly decline since April 2022.
Technology stocks are in turmoil, and Intel’s stock, which had disappointing revenue forecasts, was worst hit, falling 45.3% in October. Google’s parent company Alphabet also suffered heavy losses, falling more than 18% this month. Even Caterpillar, a non-information technology (IT) heavy equipment stock, was affected, with a monthly decline of 23.2%, falling victim to concerns about a data center construction frenzy.
Among the top ten component stocks of the S&P 500 index by market value, Huida fell 10.4% in October, Alphabet fell 18.7%, Amazon fell 3.5%, Broadcom fell 7.1%, and Meta fell 7.1%. Platforms fell 15.2%, Micron Technology fell 16.9%; Apple’s share price reversed the trend and rose 3.5% in October, Microsoft managed to climb 1.8%, Tesla rose 12.7%, and Eli Lilly’s monthly line rose 22.5%.
Unlike technology stocks, which are rising rapidly, energy stocks and financial stocks performed brilliantly in October, with monthly gains of more than 10%, proving that funds are abandoning technology stocks and moving into other stocks.
Summary FAQ
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This wave of decline was mainly concentrated in large technology stocks and semiconductor stocks, especially Intel, HUDA, Advanced Micro Devices and other stocks. In comparison, the S&P 500 fell only slightly, indicating that losses did not spread to the overall market.
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Because this time it is not a widespread decline, but clearly money has been taken out of technology stocks and rotated into energy, financials and other stocks; Nearly two-thirds of the S&P 500 component stocks reversed the trend and closed higher, a departure from the traditional scary October.
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The worst performer was Intel, which fell 45.3% in October. The main reason was that disappointing revenue forecasts triggered a sharp selloff in the market, which also dragged down the overall semiconductor group and the Philadelphia Semiconductor Index.
