See the full story in the original article.
Read the original on MarketWatch ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 709.82 |
| Change that session | -2.50% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 763.31 |
| Change that session | -1.10% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Markets today : Wall Street hit by tech slump , ASX set to edge lower
A broad sell-off in technology stocks pushed Wall Street lower, with the S&P 500 down 1.1% and the Nasdaq down 2.1%, leaving the S&P 500 about 2% lower for the week and erasing last week's record gains. Chipmakers including Micron, AMD, Broadcom and Intel led the declines amid doubts about how long the AI spending boom can last, as tech giants that rely on debt may struggle to keep borrowing while bond yields climb. The 10-year Treasury yield eased to 5.09% but had topped 5.30% earlier this month, its highest since 2002, and traders now see a 74.3% chance of a Fed rate hike in December, up from 50.2% a month ago. Brent crude jumped 3.7% to $109.86 a barrel as the Iran war continues without a U.S.-Iran deal. The Australian sharemarket was set to edge lower, with futures pointing to a loss of 11 points (0.1%).
- Dow Futures Rise Despite 'Black Monday' Calls: Market Commentator Says Selloff Worries Are 'Overdone'
U.S. stock futures rose late Sunday after Friday's slide in the Nasdaq Composite, even as calls for a 'Black Monday' crash trended. The Kobeissi Letter called selloff fears 'overdone,' noting the S&P 500 has climbed from about 5,500 to around 7,650 since May 2025, though it argues the market is in a 'stealth' bear market, with 84% of stocks at least 10% below record highs. S&P 500 futures rose 0.72% to 7,760, Nasdaq 100 futures gained 1.2%, and Dow futures added 0.44% to 52,446, after the S&P 500 closed 1.09% lower on Friday. Memory stocks came under pressure last week as investors balanced strong AI demand against rising interest rates, Chinese competition and uncertain supply. Polymarket traders priced a 7% chance of a U.S. recession by the end of 2026, while David Rosenberg of Rosenberg Research sees better-than-even odds of one within a year.
- We Just Witnessed a Unique Stock Market Measure Do Something for Only the 4th Time Since 1997 , and It Offers a Chilling Outlook for Wall Street
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite have hit several record closing highs over the past four years, driven by AI infrastructure spending, record-breaking IPOs and better-than-expected earnings. The article highlights outstanding margin debt, reported monthly by FINRA, as a measure of investor risk-taking, since borrowing can magnify both gains and losses. Since 1997, margin debt has surged at least 65% over a short period four times, and the three earlier episodes preceded major bear markets, including the dot-com crash, the financial crisis and the 2022 downturn. From April 2025 to June 2026, margin debt rose 77% to an all-time high of $1.502 trillion, which the article says could foreshadow trouble for stocks, though long-term investors have historically benefited.
- We Just Witnessed a Unique Stock Market Measure Do Something for Only the 4th Time Since 1997 , and It Offers a Chilling Outlook for Wall Street
The article notes the US stock market has rallied for roughly four years, with the Dow Jones, S&P 500 and Nasdaq posting several record closes, driven by AI infrastructure spending, record IPOs and better-than-expected earnings. It focuses on outstanding margin debt, the money investors borrow from brokers to buy or short-sell securities, which FINRA reports monthly as a gauge of risk-taking. Since 1997, margin debt has jumped at least 65% over a short period four times, and the previous three were followed by major bear markets, including the dot-com crash, the financial crisis and the 2022 downturn. The latest episode, from April 2025 to June 2026, lifted margin debt 77% to a record 1.502 trillion USD. While the article warns of short-term risks, it also notes stocks have historically delivered higher average annual returns than other asset classes, so long-term investors may view the picture differently.
- Exchange-Traded Funds Higher, Equity Futures Mixed Pre-Bell Monday as Tech Stocks Recover
- Update: Tech Stock Rebound Nudges US Equity Futures Mostly Higher Pre-Bell
Related markets
Latest news
- Earnings live updates: All eyes on Musk and Meta as Q3 earnings rev up
Big tech is the focus of this week's earnings season, with Meta (META), SpaceX (SPCX) and Tesla (TSLA) due to report. SpaceX and Netflix (NFLX) kick off on Tuesday after the bell, while Tesla and Meta report on Wednesday, offering an early read on the Magnificent Seven and the AI trade. Wall Street estimates S&P 500 earnings growth of 29.6%, according to FactSet; if that holds, it would be the third straight quarter of growth above 25%. General Motors (GM), IBM (IBM), United Airlines (UAL) and Procter & Gamble (PG) also report this week.
- Mysterious UAV Enters Lithuania as NATO Fighters Fail to Intercept It
On the morning of October 18, an unidentified drone entered Lithuanian airspace between 6:00 and 8:00, prompting an air alert and the scrambling of NATO jets, which escorted the object but could not shoot it down due to difficult weather. Debris later found in Juojonis village in Pasvalys district was initially identified as drone parts, and the military says it may have entered from Poland. Latvia issued a similar warning for several regions and cancelled it at 8:12, though its army has not confirmed the object was a drone. Prime Minister Mindaugas Sinkevičius said the sabotage hypothesis must be verified, while law enforcement works to determine the drone's origin; earlier, on September 15, Italian Eurofighter Typhoons shot down a drone that had flown into Lithuania from Belarus.
- Corning Is Moving Beyond Fiber Cables. Can AI Networking Pay Off?
Corning (GLW) is extending beyond fiber cables into optical components inside AI systems, having demonstrated optical connectivity with Lumentum and Astera Labs on October 12 and partnered with Nvidia on a planned tenfold expansion of optical connectivity capacity in the US. Its Optical Communications sales rose 32% year-over-year to $2.07 billion in Q2 2026, and management sees a potential $10 billion revenue opportunity by 2030 from a photonics platform, though timing and adoption remain uncertain. Still, the valuation is elevated, with a forward non-GAAP P/E of 44.81x, about 84% above its 5-year average of 24.31x, while analysts expect EPS to grow 30.41% in December 2026 and 33.02% in December 2027. The article notes that slower AI spending or delayed CPO adoption could pressure the stock.
- Google’s Next AI Chip Is Running Late. Why Marvell May Be Fine
GF Securities says one part of Google's TPU v9 design slipped about three weeks, likely due to a redesign, pushing the timeline back roughly a quarter, with mass production now expected in Q2 2027. Packaging substrate yields of just 45% to 50% are a key obstacle, but GF sees no demand problem, citing strong TPU demand from Google and external customers such as Anthropic. The firm points to MediaTek, not Marvell (MRVL), as facing short-term headwinds, so any benefit to Marvell appears indirect. At 63x forward earnings, a 66% premium to its five-year average P/E of 38.02x, the article concludes the delay is not by itself a reason to buy.
- Stocks bounce back, Anthropic's "Public Benefits", and Musk's promise to American kids
The 8:30 show, hosted by Julie Hyman, Pras Subramanian and Jake Conley, discusses the stock market's rebound. Other topics include Anthropic's (ANTH.PVT) commitment to a “Public Benefit” fund, Elon Musk's promise to American children about SpaceX (SPCX) stock ahead of earnings, and doubts over an IPO after Microsoft (MSFT) withdrew.
- Microsoft vs. Alphabet: Is GOOGL’s Cloud Growth Worth More Than Investors Think?
Microsoft (MSFT) and Alphabet (GOOGL) trade at forward P/E ratios of 25.13 and 22.83, respectively. Google Cloud revenue jumped 82% to $24.8 billion in the second quarter, with operating income rising from $2.8 billion to $8.8 billion, while Azure and other cloud services grew 43%. Both companies face heavy infrastructure spending: Microsoft spent $35.8 billion on property and equipment, pushing its cloud gross margin down to 65%, while Alphabet spent $44.9 billion, leaving roughly negative $5.85 billion in quarterly free cash flow. The article argues Alphabet's $9.11 EPS is unreliable because about $98 billion came from net other income, so its 30% operating-income growth better reflects underlying performance. Microsoft has a more diversified earnings base and higher consolidated operating margins, but the key question is whether either company can turn AI demand into cash after paying for infrastructure.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.