Why it matters
- The Nasdaq Composite fell 2.15% to 26,140.03 and the S&P 500 lost 1.09% to 7,659.44 on Friday, Oct. 16, as a sell-off in AI-linked stocks deepened, Reuters reported. The Dow slipped 0.34% to 52,002.41.
- For the week, the Nasdaq fell 4.48% and the S&P 500 1.95%, while the Dow gained 0.67%, Yahoo Finance data showed. The PHLX chip index fell 3.8%, its eighth straight decline, Reuters said.
- Brent crude settled up 3.7% at $109.86 a barrel, its highest since May 19, Reuters reported. Industrial production rose 0.7% in September, the Federal Reserve said.
Session recap: what happened in this region's trading day, with sources.
U.S. stocks fell on Friday, Oct. 16, as selling in AI-linked technology shares deepened and oil prices jumped. The Nasdaq Composite dropped 2.15% to 26,140.03, the S&P 500 fell 1.09% to 7,659.44 and the Dow Jones Industrial Average slipped 0.34% to 52,002.41, Reuters reported. The Nasdaq ended the week down 4.48%.
| Index | Friday close | Change vs. Thursday | Change vs. Oct. 9 |
|---|---|---|---|
| S&P 500 | 7,659.44 | −84.62 (−1.09%) | −1.95% |
| Nasdaq Composite | 26,140.03 | −573.00 (−2.15%) | −4.48% |
| Dow Jones Industrial Average | 52,002.41 | −175.28 (−0.34%) | +0.67% |
| Russell 2000 | 2,721.37 | −45.90 (−1.66%) | −3.05% |
| S&P/TSX Composite (Canada) | 36,176.55 | +39.45 (+0.11%) | — |
| Ibovespa (Brazil) | 205,430.33 | +1,106.33 (+0.54%) | — |
| S&P/BMV IPC (Mexico) | 68,929.72 | +1,266.43 (+1.87%) | — |
Source: Yahoo Finance daily chart data. Weekly changes are from the Friday, Oct. 9, close. U.S. closes match the Reuters closing report.
Why did the Nasdaq fall on Friday?
Doubts about the AI trade kept pressure on technology stocks, Reuters reported. CoreWeave fell 12% and was down about 25% over five sessions, as its bonds also sold off, pushing their yields above 15%, according to Reuters. Broadcom lost 4.5%, Tesla 3.1% and Netflix 2.8%. The PHLX chip index fell 3.8% for its eighth straight decline, its longest losing streak since 2008, Reuters said.
The selling was narrow: six of the 11 S&P 500 sectors rose, led by energy with a 2.47% gain and utilities with about 1.4%, Reuters reported. "There is some fear in the market," Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, told Reuters, adding that high oil prices weigh on stock valuations. The Cboe Volatility Index rose 21.45% to 19.99, Yahoo Finance data showed.
After hotter-than-expected consumer and producer inflation reports this week, markets increasingly expect the Fed to hold rates steady this month, Reuters said, while Barclays expects quarter-point hikes in December and January.
What did the industrial production report show?
Industrial production rose 0.7% in September after a revised 0.1% gain in August, the Federal Reserve said in its G.17 release. Manufacturing output rose 0.3%, mining 0.2% and utilities 3.5%. Output was up 2.2% from a year earlier. Capacity utilization rose to 76.9% from a revised 76.4% in August.
How did bank stocks react to earnings?
| Company | Third-quarter EPS | Stock move Friday |
|---|---|---|
| Travelers | $9.04, up from $8.24 (core $9.18) | +1.47% to $389.54 |
| Truist | $0.56 ($1.16 adjusted, up 12%) | +1.07% to $47.07 |
| Regions Financial | $0.71, up 16% | +0.51% to $27.45 |
| Citizens Financial | $1.41, up 34% | −0.11% to $63.36 |
| M&T Bank | $5.04, up from $4.82 | −1.54% to $215.28 |
Sources: company earnings releases; Yahoo Finance chart data.
Truist's reported result included a $1.4 billion pre-tax loss on the sale of securities, the bank said. Travelers reported a combined ratio of 86.8%, and Citizens raised its dividend 13%.
What happened to oil and Treasury yields?
Brent crude settled up $3.94, or 3.7%, at $109.86 a barrel, its highest since May 19, and West Texas Intermediate rose $3.44, or 3.5%, to $101.41, Reuters reported. Brent gained 4.9% for the week and WTI 10.4%. Energy Aspects said "escalation fears resurfaced amid rumours of attacks on Saudi energy infrastructure," according to Reuters. Gold futures were up 0.43% at $4,188.20 an ounce in late trading, Yahoo Finance data showed.
The 10-year Treasury yield edged down to 5.09% from 5.10%, and the 2-year yield fell to 4.74% from 4.77%, Treasury Department data showed.
What's next for markets?
China releases third-quarter GDP on Monday, Oct. 19, and the Fed's next decision is due Oct. 28; see our market calendar. This morning's day ahead covered the import price report, and the Europe Friday recap and Asia Friday recap cover the earlier sessions. Thursday's U.S. session recap covered the rotation into health care. The markets page tracks the latest numbers.
Follow the rest of the trading day on our global market today page, with the latest Asia, Europe and Americas session recaps.
Sources
- Reuters via Yahoo Finance, S&P 500, Nasdaq set for steep weekly losses as AI jitters rattle investors
- Reuters via Investing.com, Oil touches $110 a barrel for first time since May on Middle East, Russia supply fears
- Federal Reserve, G.17 Industrial Production and Capacity Utilization, September 2026
- Travelers, third-quarter 2026 earnings release (SEC filing)
- Truist, third-quarter 2026 earnings release (SEC filing)
- M&T Bank, third-quarter 2026 earnings release (SEC filing)
- Citizens Financial Group, third-quarter 2026 earnings release (SEC filing)
- Regions Financial, third-quarter 2026 earnings release (SEC filing)
- U.S. Treasury, Daily Treasury par yield curve rates, 2026
- Yahoo Finance, daily chart data for the S&P 500, Nasdaq Composite, Dow, Russell 2000, S&P/TSX Composite, Ibovespa, S&P/BMV IPC, VIX, Travelers, Truist, Regions, Citizens, M&T Bank and gold futures