US close: Stocks drop, Nasdaq hits three-month low amid tech sell-off
The Nasdaq dropped 2.9% to a three-month low, with Intel and Amazon.com leading declines. Intel fell 29% after a weak outlook, while Amazon dropped 1% on missed earnings. Reddit also fell 29% despite revenue growth. ExxonMobil and Chevron rose on strong earnings, and Regeneron gained on revenue growth and a collaboration deal. Employment costs rose 0.8% in September, and the Chicago PMI decreased to 55.30.
How this was made
The 30-second read
Why it matters
The fresh guidance cuts and earnings beats create divergent price pressures across sectors, with tech under pressure and energy/biotech gaining.
Market read
Broad market decline driven by tech earnings disappointment, offset by sector‑specific strength in energy and biotech.
What to watch
SanDisk's forward split could attract retail investors seeking lower price points, potentially offsetting the broader tech weakness.
Background
The article is a market wrap summarizing the day's closing moves, highlighting fresh earnings guidance and results for several large‑cap companies.
Ticker impact
Intel slumped 29% after issuing a downbeat outlook for the current quarter, citing a slowdown in PC demand.
likely continued pressure as investors price in lower demand and reduced revenue expectations
Guidance cut is a fresh, material development for a large-cap chipmaker.
Amazon fell 1% after posting weaker‑than‑expected third‑quarter results and keeping its 2026 capex forecast at $220 bn.
moderate downside as the market digests the miss and steady capex guidance
Earnings numbers and guidance are new information affecting a mega‑cap.
SanDisk traded 13% lower despite beating fiscal first‑quarter estimates and announcing an eight‑for‑one forward stock split.
potential short‑term pressure until split mechanics are clarified
Split announcement is fresh but the earnings beat offsets some impact.
Reddit shares plunged around 29% even though third‑quarter revenue rose 53% to $895 m; US daily active users fell 2%.
likely further downside if user engagement does not improve
Revenue beat is offset by user decline, a fresh mixed signal for the stock.
ExxonMobil beat analysts' forecasts with strong quarterly earnings as refining margins surged.
upward bias as investors reward better‑than‑expected results
Earnings beat is new but the move is modest in a broader market decline.
Chevron beat analysts' forecasts with strong quarterly earnings, helped by higher refining margins.
moderate upside as the sector benefits from higher margins
Fresh earnings data for a large energy player.
Regeneron rallied after reporting a 36% increase in third‑quarter revenue to $5.12 bn and announcing a $1 bn upfront payment from Sanofi.
upward pressure as the deal adds significant near‑term cash and growth potential
Both revenue growth and a sizable partnership payment are fresh, material news.
Sanofi entered an expanded collaboration with Regeneron involving next‑generation immunology treatments and a $1 bn upfront payment.
potential modest upside as investors value the new partnership
Part of a joint announcement; impact is secondary to Regeneron's rally.
Market effects
Tech sector faces heightened scrutiny on AI spending, pressuring chip and cloud stocks; energy and biotech show relative strength.
U.S. equities decline broadly, with European and Asian markets likely to open lower on tech weakness.
The tech sell‑off contributes to a risk‑off tone globally, while strong energy earnings provide a counterbalance.
Counterpoint
Despite the tech sell‑off, the earnings beat by Exxon and Chevron may signal a shift toward energy as a defensive play.
Key entities
- companyIntel
Chipmaker issuing downbeat outlook
- companyAmazon.com
E‑commerce and cloud giant missing earnings
- companyRegeneron
Biotech firm reporting revenue surge and partnership
