New York stock market closes lower

By Gokhan Ergocun

ISTANBUL (AA) - The New York stock market closed lower, led by a decline in technology stocks, as corporate financial results reignited concerns regarding investments in artificial intelligence.

The Dow Jones industrial average rose slightly 11.89 points, or 0.02%, to 52,867.98.

The S&P 500 dropped by 1.21%, or 93.74 points, to 7,663.43, while the Nasdaq Composite fell sharply by 2.6%, or 694 points, to close at 26,008.86.

The Volatility Index (VIX), often referred to as the market's "fear index," soared 14.09% to 19.03.

With the earnings season in full swing in the US, equity markets saw a negative trend driven by a sell-off in technology stocks.

While strong financial results from SpaceX and Super Micro Computer bolstered optimism regarding growth in the artificial intelligence (AI) sector, the earnings reports released by Tesla and Meta rekindled concerns about the industry.

Shares of the US electric vehicle manufacturer Tesla fell 3.08% after the company lowered its capital expenditure forecast for the year.

The company reported that its net profit for the third quarter of 2026 declined by 43% compared to the same period last year; during the same period, Tesla's revenue remained flat at $28 billion.

Shares of the US technology company Meta also fell 6.98% following the release of its financial results. Although Meta—the parent company of Facebook, Instagram, and WhatsApp—reported third-quarter revenue and profit that exceeded expectations, its decision to raise its annual capital expenditure forecast to a range of $135 billion to $145 billion contributed to a decline in its share price.

Due to spending on AI, the company experienced a cash outflow for the first time in over a decade.

Shares of chipmakers also saw declines: Intel fell by 8.04%, Advanced Micro Devices (AMD) by 8.1%, Qualcomm by 2.88%, Broadcom by 4.31%, and Micron Technology by 6.26%.

Meanwhile, oil prices continued to climb, driven by geopolitical tensions in the Middle East and concerns regarding energy supplies; the price of a barrel of Brent crude rose above $112.

In the bond market, the yield on the 10-year US Treasury note fell below the 5% mark, reaching its lowest level in a month.

Regarding macroeconomic data, the number of initial jobless claims in the U.S. for the week ending October 17 dropped to 194,000—a figure below market expectations.

This decline in jobless claims suggests that the labor market remains resilient, while also reinforcing expectations that the Fed may keep interest rates unchanged at its upcoming meeting on October 27–28.

In money market, the probability that the Fed will keep its policy interest rate unchanged next week has risen above 90%.

- European stocks close in red

European stock markets ended the day negative as the pan-European Stoxx Europe 600 index was down 1.05% to 637.74 points.

Britain’s FTSE 100 fell 0.26% to 10,725.03, Germany’s DAX 40 decreased 1.07% to 25,371.75, and France’s CAC 40 dropped 1.39% to 7,811.26.

Italy’s FTSE MIB 30 index went down 2.54% to close at 48,383.66, and Spain's IBEX 35 declined 2.12% to close at 18,913.50.

Gökhan Ergöçün