Level 1 - Absolute Beginner
On Thursday, October 8, the US stock market went down. The Nasdaq fell by more than one percent.
The Nasdaq is full of technology companies. Many people sold their tech shares. They are worried about artificial intelligence, or AI.
Some chip companies had a bad day. Nvidia, Micron and Intel went down. Interest rates and oil prices were also high.
The Dow Jones went up a little. But the big story was the fall in tech.
- stock market
- A place where people buy and sell parts of companies.
- fell
- Went down.
- technology
- Machines and computer tools.
- shares
- Small parts of a company that people can own.
- chip
- A tiny part inside a computer.
- oil
- A liquid used to make fuel.
- worried
- Afraid that something bad may happen.
- sold
- Gave something to a person for money.
Level 2 - Elementary
US stocks ended lower on Thursday, October 8. The Nasdaq Composite lost 1.25 percent and closed at 27,193.34. The S&P 500 fell 0.47 percent to 7,765.36.
It was the second day in a row of losses for the Nasdaq and the S&P 500. Investors were nervous about artificial intelligence companies after new details about OpenAI.
Chip makers such as Nvidia, Micron and Intel were among the biggest losers. Rising government bond yields and high oil prices also made investors careful.
The Dow Jones was the exception. It added 51.77 points, or 0.1 percent, and closed at 51,231.64.
- closed
- Finished the day at a certain price.
- investors
- People who put money into companies.
- nervous
- A little afraid or worried.
- details
- Small pieces of information.
- exception
- Something that is different from the others.
- bond yields
- The money a government bond pays to the person who owns it.
- points
- Units used to measure how much an index moves.
- composite
- Made of many different parts.
Level 3 - Intermediate
Wall Street ended lower on Thursday as the artificial intelligence trade stumbled again. The tech-heavy Nasdaq Composite dropped 1.25 percent to 27,193.34, and the S&P 500 slipped 0.47 percent to 7,765.36, extending losses to a second straight session.
Analysts linked the sell-off to fresh details about OpenAI that unsettled investors who have bet heavily on the AI boom. Semiconductor leaders, including Nvidia, Micron and Intel, were among the heaviest decliners, reflecting worries that the spending on AI infrastructure may not pay off as quickly as hoped.
Rising Treasury yields and elevated oil prices added to the pressure. Higher yields make future corporate profits less valuable in today's money, which tends to hit growth stocks hardest, while expensive energy raises costs across the economy.
The Dow Jones Industrial Average bucked the trend, gaining 51.77 points, or 0.1 percent, to 51,231.64, helped by sectors less tied to technology. The mood is also shaped by last Friday's weak jobs report, in which employers added only 29,000 positions against forecasts of about 84,000.
- sell-off
- A period when many investors sell at the same time.
- semiconductor
- A material used to make computer chips; also the industry that makes them.
- decliners
- Shares whose prices went down.
- infrastructure
- The basic equipment and buildings a system needs.
- Treasury yields
- The returns paid on US government debt.
- elevated
- Higher than normal.
- bucked the trend
- Did the opposite of what most others were doing.
- forecasts
- Predictions about what will happen.
Level 4 - Advanced
Wall Street retreated for a second consecutive session on Thursday as renewed anxiety over the artificial intelligence trade dragged the Nasdaq Composite down 1.25 percent to 27,193.34. The S&P 500 shed 0.47 percent to 7,765.36, while the Dow Jones Industrial Average, insulated by its lighter technology weighting, eked out a 51.77-point gain to 51,231.64.
The proximate trigger was a fresh batch of details about OpenAI that rattled investors who have underwritten much of this year's rally with the premise that heavy outlays on data centres and chips will translate into durable earnings. Semiconductor bellwethers, among them Nvidia, Micron and Intel, bore the brunt of the selling.
Macro headwinds compounded the unease. Treasury yields kept climbing, eroding the present value of the distant profits on which richly valued growth stocks depend, and oil prices remained stubbornly elevated, a legacy of the standoff in the Gulf that feeds through to transport, manufacturing and consumer budgets alike.
The backdrop is hardly reassuring. September payrolls rose by a mere 29,000, far short of the roughly 84,000 economists expected, and unemployment ticked up to 4.2 percent. A softer labour market coupled with sticky energy costs leaves the Federal Reserve little room for manoeuvre, and it leaves equity valuations more exposed to any wobble in the AI narrative.
- retreated
- Moved back or declined.
- insulated
- Protected from outside effects.
- proximate
- Immediately next to or closest in cause.
- underwritten
- Financially supported or guaranteed.
- bellwethers
- Leading examples whose behaviour shows what the wider group is doing.
- headwinds
- Forces that make progress harder.
- present value
- What a future payment is worth in today's money.
- manoeuvre
- A careful movement or action to gain an advantage.