U.S. stocks sold off sharply on Thursday, with chipmakers and large technology companies among the biggest decliners. The VIX rose above 25 as investors weighed volatile post-earnings moves, uncertainty over artificial intelligence regulation and concerns about the economic outlook. The session underscored how quickly investors can reposition even when some companies report results above expectations.
Chipmakers lead declines as the VIX tops 25
Trader Chris Ciaccia said heavy selling emerged at the open and spread across the market. It was unclear whether large institutional investors were behind the selling. A daily drop of 3% or more in the S&P 500 alongside a decline of at least 5% in the Nasdaq is unusual; sharp moves can sometimes reflect technical trading, but there was no clear explanation for Thursday’s sell-off.
Qualcomm was on track for its worst single-day performance since 2020. AMD fell 12%, Broadcom and Nvidia each lost about 5%, and Taiwan Semiconductor Manufacturing Company dropped more than 7%. Major platform companies also declined: Meta fell 4%, Amazon lost 3%, and Microsoft was lower. The VIX climbed above 25, a sharp rise from the previous day that signaled greater concern about near-term market swings.
Qualcomm guidance adds to earnings volatility
Technology companies’ results have generally been solid this earnings season, but share-price reactions have not always matched the direction of reported performance. Qualcomm’s latest quarterly results were considered respectable, yet its guidance came in slightly below expectations. Weak demand in its handset business, together with a data-center business that is still too small to offset pressure in phones, helped explain the negative investor response.
AppLovin moved in the opposite direction. Its shares rose 30% in early trading the day after the company reported results. The scale of the move, despite results beating expectations, highlighted how volatile the current trading environment has become. Analysts noted that a large share-price move does not necessarily mean a company’s fundamentals have changed by a similar amount in a short time; the market’s response to earnings can also shift in subsequent sessions.
Investors are also assessing uncertainty around AI policy. Potential regulation could affect the AI supply chain, but the direction of policy remains unclear. Shifting expectations for regulation, corporate earnings and the economy are contributing to larger intraday moves in technology stocks.
Apple plans seven-part bond deal estimated at $7 billion
Apple said it would enter the bond market with a seven-part offering. The company regularly issues debt to fund share buybacks or for general corporate purposes. Early market estimates put the deal at about $7 billion, with maturities reportedly extending into the mid-2030s; the final size and coupon rates had yet to be confirmed. Apple shares rose in early trading after the announcement.
The expected offering is smaller than the large debt financings recently undertaken by Alphabet, Amazon and Meta. Investors have also focused in recent months on Apple’s comparatively steady business performance: the iPhone remains its core product, Mac has been strong, iPad has improved and services revenue continues to grow. The company’s more measured AI spending relative to some competitors is also part of market assessments of its costs and operating stability.
Unity reports first GAAP profit as gold rebounds
Unity Software reported third-quarter results that exceeded expectations on revenue and other measures, and posted its first-ever profit on a GAAP basis since going public. Its fourth-quarter guidance was well above Wall Street expectations, and the stock rose as much as 22% before the market open. Unity competes with AppLovin, and sharp moves in both stocks following their earnings reports drew investor attention.
Gold has climbed in recent days after weakening for about six months, while silver and other metals have also performed strongly. Investors view gold as one potential haven, but the recent price gains come as uncertainty over policy and the economic outlook has increased. Flows may continue to shift with market sentiment.
Investors were also watching results due later that evening from Akamai, companies in the quantum computing sector, Atlassian and Dropbox. Dropbox said it would make the largest acquisition in its history. The article also cited Marvell’s planned $115 billion acquisition of Lumentum. Markets will be watching these earnings and deal announcements, alongside whether the sharp swings in stocks persist.