Nasdaq Plunges, Dow Gains

A sell-off hit U.S. technology stocks in trading on Thursday (15/10/2026). The tech-heavy Nasdaq Composite index plunged 1.3 percent, while the S&P 500 weakened by 0.5 percent. In contrast, the Dow Jones Industrial Average rose 273 points or 0.5 percent.

The primary catalyst for the turbulence was the release of September US inflation data that came in hotter than expected. Headline inflation was recorded at 3.7 percent with core inflation at 2.6 percent. These figures revived speculation that the US central bank (The Fed) could raise interest rates in October, which would increase corporate debt costs.

AI Stocks Plunge Across Asia and Europe

Stocks exposed to the artificial intelligence (AI) frenzy became the biggest casualties. In Asia, South Korean memory chip stocks SK Hynix closed down 11 percent, while Samsung Electronics plummeted 9.5 percent.

In the United States, Nvidia shares fell 1.7 percent in pre-market trading, Micron Technology tumbled 4.4 percent, and CoreWeave plummeted 5.6 percent. Nasdaq 100 futures dropped 1.2 percent, signaling a weak opening. In Europe, shares of Dutch semiconductor equipment maker ASML Holding fell 5.6 percent and German chipmaker Infineon lost 7.9 percent.

Investors are increasingly anxious over the mounting debt companies are taking on to fund AI infrastructure spending. Concerns regarding growth and debt financing sent US chip stocks plunging for an eighth consecutive trading day.

Bonds Strengthen, Netflix Mass Layoffs

Amid the panic, investors scrambled for safe-haven assets. The yield on the 10-year US Treasury note, which had spiked nearly 10 basis points to 5.33 percent following the release of inflation data, subsequently dropped 13 basis points to 5.077 percent, its lowest level in three weeks.

Negative sentiment in the tech sector deepened after Netflix cut about 6 percent of its workforce, the streaming company's largest layoffs since 2022. Analysts note that the market is now re-examining the astronomical valuations of AI stocks amid rising funding costs.