Wall Street ended Thursday’s session with no clear direction. Technology shares led losses as semiconductor heavyweights came under renewed selling pressure, and concerns over escalating US-Iran tensions weighed on sentiment, while oil rallied sharply on renewed warnings from Iran over the Strait of Hormuz and supply concerns as Hurricane Isaias approached. Treasury yields retreated from recent multi-decade highs. By Friday morning, oil had given back part of those gains and the dollar had softened, leaving investors focused on US consumer sentiment data and earnings from Delta Air Lines and BlackRock.
US equities: technology weighs as energy and staples hold firm
The Nasdaq Composite fell 1.3% to 27,193.34. The S&P 500 declined 0.5% to 7,765.36, its second losing session in a row, while the Dow Jones Industrial Average managed a marginal gain of 0.1% to 51,231.64, helped by energy and consumer staples stocks. Concerns over escalating tensions between the US and Iran also weighed on sentiment.
Sentiment towards technology soured further after reports that OpenAI ended September with annualised revenue of around $50 billion, below the $68 billion figure previously speculated in the media. Semiconductor-related stocks took the brunt of the selling, with Arm, Oracle and Intel each losing 5.3% or more. In contrast, PepsiCo rose 3.7% on stronger-than-expected third-quarter results, and Chipotle Mexican Grill jumped 6.2% on reports that Starbucks had looked at a possible takeover.
Oil, bonds and the Federal Reserve
Outside equities, Thursday’s moves were driven by geopolitics, weather and the interest rate outlook. The sections below cover crude oil, US government bonds and the latest signals from the Federal Reserve.
Crude rallies on supply risks
Oil prices rose strongly as geopolitical risks and potential supply disruptions pushed crude higher. WTI crude gained 3.8% to $91.67 per barrel and Brent climbed 4.3% to $104.51 after Iran issued fresh warnings about shipping through the Strait of Hormuz. President Donald Trump said there would be no military strikes on Iran ahead of November’s midterm elections, but uncertainty over the conflict kept prices supported. The approach of Hurricane Isaias also raised supply concerns, with Chevron beginning production shutdown procedures at four Gulf facilities.
Treasury yields ease from multi-decade highs
US Treasury yields retreated from recent multi-decade highs. The 10-year Treasury yield fell five basis points to 5.23% and the 30-year yield dropped to 5.60%, although recent Treasury auctions have continued to push borrowing costs higher. Federal Reserve Governor Christopher Waller reinforced expectations of further tightening, saying additional rate rises may be needed to return inflation to target.
Global markets overnight
Trading in Asia, Europe and the currency and commodity markets set the tone heading into Friday. Here is how each region and asset class moved.
Asia mixed as chipmakers fall
Asian markets delivered a split performance, with semiconductor stocks leading the declines amid broader technology sector weakness. Japan’s Nikkei lost 0.6% and China’s Shanghai Composite fell 1.2%, while Hong Kong’s Hang Seng rose 0.9% and Australia’s ASX 200 added 0.6%. In Japan, SoftBank dropped 5%, and Chinese chipmakers SMIC and Hua Hong also traded lower.
US futures point higher
US stock futures edged higher overnight. S&P 500 futures rose 0.2%, Dow futures gained 0.15% and Nasdaq 100 futures added 0.4%. AI stocks remained under pressure following the OpenAI revenue reports, while SpaceX gained more than 2% after announcing a nationwide spectrum purchase. Investors are awaiting US consumer sentiment figures and quarterly results from Delta Air Lines and BlackRock.
Europe extends losses as bond yields rise
European shares fell for a second straight session. The Euro STOXX 50 dropped 0.8% and the STOXX Europe 600 lost 0.7% as surging government bond yields heightened concerns over debt sustainability. Banks were among the weakest performers, with UniCredit, Intesa Sanpaolo, ING and Santander down between 2.5% and 3.1%. Argenx plunged more than 15% after halting a late-stage clinical trial.
Dollar softens and the euro firms
The US dollar lost ground against the major currencies, with the dollar index edging towards 102 as lower Treasury yields and hopes of progress in talks between Washington and Tehran weighed on the greenback. The euro rose to $1.1225. Expectations of further Federal Reserve tightening, including a possible rate rise in December, could limit how far the dollar falls from here.
Oil gives back some gains on Friday
Crude prices eased on Friday as fears of further US military action against Iran faded, offsetting continued supply disruption in the Middle East. Brent declined 0.8% to $103.45 a barrel and WTI fell 0.7% to $90.86. The declines were contained by Hurricane Isaias, which has forced the shutdown of around 63% of oil production in the Gulf of Mexico.
Iran holds firm on nuclear programme
Iran restated that it will neither stop enriching uranium nor hand over its stockpile, rejecting US demands to restrict its nuclear programme. Diplomatic efforts are nonetheless continuing, and Tehran is waiting for a US reply to its proposal to reopen the Strait of Hormuz. President Trump called the talks productive and ruled out attacks before November’s midterm elections.
Equities on the move
Several companies saw notable share price moves driven by analyst ratings, quarterly earnings or other news. The key stories are summarised below.
SpaceX expands spectrum holdings
SpaceX gained 2.3% in after-hours trading after agreeing to buy Grain Management’s nationwide 800 MHz spectrum portfolio, a deal that strengthens the satellite and terrestrial connectivity of Starlink Mobile. The move threatens established telecoms operators, with AT&T down 6.5%, T-Mobile down 6.6% and Verizon down 5.8% after hours. Separately, the FCC approved Starlink’s next-generation satellite constellation.
American Express fined over anti-money laundering failures
American Express fell nearly 2% after hours after US regulators fined the company $350 million for systemic failures in its anti-money laundering monitoring. According to the OCC, around $13 billion in suspected trade-based money laundering went undetected over the last ten years. Amex said it does not expect the penalty to affect its 2026 financial guidance, and no restrictions have been placed on its growth.
OpenAI revenue below earlier reports
OpenAI’s annualised revenue stood at roughly $50 billion in September, about $20 billion lower than figures previously reported in the media. The gap is explained by different accounting approaches: rival Anthropic counts sales made through cloud partners, while OpenAI does not. OpenAI told investors its revenue had grown by more than 70%, pointing to strong demand for AI technology.
Starbucks reportedly weighs Chipotle bid
Reports that Starbucks has explored buying Chipotle sent Chipotle shares up by as much as 8%, while Starbucks fell 6%. The potential deal remains uncertain. A combination would bring Starbucks chief executive Brian Niccol back together with the company he previously led, creating a restaurant group with close to $50 billion in yearly sales. It would be the largest acquisition the sector has seen.
Coca-Cola considers reversing Costa Coffee deal
Coca-Cola is reported to be considering unwinding its $5 billion purchase of Costa Coffee after an earlier attempt to sell the business failed to draw acceptable bids. The company dropped plans to sell the UK coffee chain earlier this year when private equity offers fell short of its expectations, and potential strategic buyers also had concerns over valuation and strategy.
TSMC revenue jumps on AI chip demand
TSMC reported third-quarter revenue of NT$1.49 trillion, up 50% year on year and ahead of market expectations, as demand for AI chips continued to drive growth. Revenue for September alone rose 55% to NT$511.9 billion, and revenue for the first nine months of the year was up 41.1%. Demand for advanced chips remains strong, supporting customers including Nvidia, AMD and Apple, while TSMC continues to expand its capacity worldwide.
PepsiCo beats estimates but cuts profit outlook
PepsiCo exceeded expectations for both earnings and revenue in the third quarter, with organic sales growth picking up to 3.1%. The company did, however, lower its full-year profit outlook because of higher costs and softer performance in North America. It now expects constant-currency earnings per share growth of 1% to 2%, down from its previous range of 4% to 6%, despite stronger revenue guidance.
Amazon launches premium tablet range
Amazon introduced three premium tablets priced between $230 and $500, replacing its budget Fire range in a bid to compete with Apple and Samsung. The new devices offer access to the Google Play Store and come with Alexa+ AI built in. They go on sale in North America on 14 October and in Europe on 19 October, as Amazon targets market share in a shrinking global tablet market.
Bloom Energy and Oracle hit by data centre power reports
Bloom Energy shares fell after reports that Oracle is relying on natural gas delivered by truck to run data centres while delayed pipeline infrastructure is completed. Oracle, which has contracted up to 2.8GW of Bloom’s fuel cell systems, also declined. Pipeline delays could affect the timing of several AI data centre projects and increase dependence on temporary and alternative power sources.
Argenx halts late-stage Sjögren’s trial
Argenx shares dropped almost 16% after the biotech company stopped a Phase 3 trial of efgartigimod in Sjögren’s disease. An interim analysis showed the trial was unlikely to reach its primary endpoint, although safety data remained in line with the drug’s known profile. The company will conduct a full analysis of the data to inform future research.
Revolut leans towards a US listing
Revolut chief executive Nik Storonsky said the company would prefer a primary listing in the US if it decides to go public. Revolut is planning a significant US expansion, including credit cards and loans following full banking approval. The company, privately valued at $115 billion, could consider a listing from 2028, subject to market conditions and investor demand.
Trump disclosure reveals Meta share purchase
Donald Trump’s latest financial disclosure showed a purchase of Meta shares worth between $5 million and $25 million, which gave the stock a brief lift. His 517 transactions in August were valued at between $74.3 million and $273.3 million in total. Other purchases included AT&T, Chevron and Netflix, along with an investment of $1 million to $5 million in SpaceX debt yielding 5.35%, while several technology holdings were sold.
Deutsche Bank sees record earnings growth
Deutsche Bank expects S&P 500 earnings growth to remain at a record 34% in the third quarter, exceeding the consensus forecast of 26.7%. The bank points to sustained AI demand, firmer cyclical activity, strong earnings from energy and materials companies, and tariff refunds as supporting factors. It sees room for larger than usual earnings surprises and maintains a favourable view of the risk and reward balance for equities.
AI chip rally expected to continue
Lynx Equity Strategies expects AI semiconductor stocks to keep rallying into the end of the year, led by Nvidia, Micron and Sandisk. Strong revenue growth at TSMC and tighter supply and demand conditions in memory chips underpin the view. Wider AI adoption and rising services demand also suggest chip demand is spreading beyond the first wave of AI infrastructure investment.
Goldman Sachs upgrades Palantir
Goldman Sachs raised Palantir to Buy with a $230 price target, pointing to faster growth in sovereign AI demand and the improving scalability of the company’s engineer-led model. Other analysts are also positive, with targets of up to $250. Valuation remains a key risk, with Palantir trading at more than 113 times forward earnings and well above model-based estimates of fair value.
Upcoming data and events
Friday’s calendar includes the University of Michigan consumer sentiment survey, the USDA’s monthly WASDE report and the weekly Baker Hughes rig count. The CFTC will release its latest Commitments of Traders report, which offers insight into speculative positioning across markets. Delta Air Lines will also publish its third-quarter results.
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