US stocks diverged on Thursday, October 8, as lower-than-expected OpenAI revenue projections revived questions about AI demand and the scale of infrastructure spending. The Nasdaq Composite fell 1.25%, while the Dow edged higher as oil retreated from its intraday peak and Treasury yields fell. After the close, major index futures were modestly higher, with Nasdaq 100 futures up 0.1%.
OpenAI revenue outlook pressures AI stocks
Stocks weakened notably in the afternoon after OpenAI presented investors with an annualized revenue figure of about $50 billion, below the $70 billion figure widely discussed in the market. That higher estimate was understood to reflect investor calculations rather than a company-confirmed target. The gap prompted fresh scrutiny of whether demand for AI services can support current levels of investment in data centers, chips and other infrastructure.
Chipmakers and AI infrastructure companies were among the hardest hit. Nebius, Bloom Energy and Astera Labs came under heavy selling pressure. Nvidia-backed Australian data center company Firmus also reportedly paused its initial public offering, adding to concerns about demand for the sector.
The Dow Jones Industrial Average gained 0.1%, while the S&P 500 fell 0.5% and the Nasdaq Composite lost 1.25%. The small-cap Russell 2000 edged up and held above its 200-day moving average. The equal-weight S&P 500 ETF rose 0.6% but remained below its 21-day average. The equal-weight Nasdaq 100 ETF fell 0.7%, staying above its 50-day average and not far from recent highs.
SpaceX spectrum plan sends telecom shares lower
SpaceX plans to acquire a large block of wireless spectrum from Grain Management, in a deal that still requires regulatory approval. The spectrum would support Starlink and bring the satellite service into more direct competition with Verizon, AT&T and T-Mobile US in wireless communications.
Verizon, AT&T and T-Mobile shares each fell about 7% in after-hours trading following the news. AST SpaceMobile also slipped modestly. SpaceX shares fell 4.2% during Thursday's regular session, then recovered slightly after the close while remaining above a prior aggressive entry range. For traditional carriers, the market question is whether Starlink's expansion could increase competitive pressure in parts of the mobile connectivity market. The transaction has not closed, and its implications depend on regulatory approval and subsequent deployment.
Oil retreats from highs as Treasury yields fall
US crude futures rose 3.6% to settle at $91.49 a barrel, after reaching $93.20 intraday. Later comments on the Middle East eased some concerns about an immediate supply shock, pulling prices back from their highs. Energy producers, transport companies and refiners broadly advanced, and the Energy Select Sector SPDR Fund gained 3%.
The 10-year Treasury yield fell 5 basis points to 5.23%, after touching 5.35% earlier in the session. Federal Reserve Governor Christopher Waller had said that further rate increases might still be needed. Yields later moved lower as oil pulled back and a 30-year Treasury auction drew a strong response. The shifts in rates and energy prices helped software, financial and some industrial stocks offset losses in AI-related shares.
Apple, Snowflake and GE Vernova hold technical support
Apple rose 1.1% to $340.43, clearing a falling trendline in a consolidation pattern. An early entry point was around $340.43, with a formal buy point at $345.34. GigaCloud Technology gained 0.8% to $56.42, holding above the $55.60 buy point in a cup-with-handle pattern. The stock is also part of the IBD 50 and was named a stock to watch for the day.
Snowflake added 3.2% to $343.30, with shares finding support around the 21-day and 10-week moving averages. Investors are watching whether it can maintain a tight consolidation, with Tuesday's high of $349 serving as an earlier reference point. GE Vernova rose 0.2% to $999.35, remaining above its 50-day moving average and a trendline entry. Tuesday's high of $1,052.78 offers a more aggressive reference, while the full consolidation pattern has a buy point of $1,195.94.
Dell Technologies slipped 0.8% to $574.57, extending several days of consolidation below the $595.31 entry point in a four-weeks-tight pattern. Tuesday's high of $587.19 is an earlier technical level to watch if the stock strengthens. Quanta Services, Comfort Systems and Credo Technology were also consolidating in relatively strong positions.
ETF moves point to sector rotation
Among growth-focused funds, the software ETF fell 0.25%, the semiconductor ETF dropped 2.8%, the innovation-themed ETF lost 0.8% and the genomics ETF declined 1.7%. The metals and mining ETF slipped 0.2%, while the Health Care Select Sector SPDR Fund fell 0.4%. The Industrial Select Sector SPDR Fund rose 0.3%, with GE Vernova among its significant holdings, and the Financial Select Sector SPDR Fund gained 0.9%.
Thursday's action reflected a pullback in AI and growth stocks after a strong run, rather than a broad market selloff: energy, financials and some industrial shares attracted buying. Investors were focused on whether the Nasdaq could regain its short-term moving averages, whether market breadth would improve and whether AI-related stocks could hold key support during the retreat.