U.S. stocks closed lower on Friday, October 23, as rising oil prices added pressure to Wall Street and investors continued to assess the cost of the artificial-intelligence boom. The benchmark S&P 500 and the Nasdaq both fell for the week, while the Dow finished the week higher.
Key Highlights
- The Dow Jones Industrial Average fell 652.82 points, or 1.2%, to 52,215.16.
- The S&P 500 declined 0.5% to 7,623.68, while the Nasdaq Composite slipped 0.2% to 25,955.34.
- Brent crude rose 3.1% to settle at $116.72 a barrel, its highest level since June 2022, according to the Associated Press.
- Nearly three out of every four S&P 500 stocks declined on Friday.
Oil Prices Add to Market Pressure
Higher oil prices weighed on stocks as geopolitical tensions disrupted global energy supplies. Brent crude had traded below $97 a barrel at the start of October before climbing to Friday’s settlement price, the Associated Press reported. Higher energy costs can raise expenses for businesses and households and add to concerns about inflation.
Energy shares moved in the opposite direction to the broader market. Chevron rose 2.9%, while ConocoPhillips gained 3.6%, according to AP market coverage. The effect of rising crude prices was not uniform across sectors, underscoring how energy-market developments can create both winners and losers in equities.
Investors Reassess the Cost of AI
Technology shares have been volatile as investors question whether large investments in artificial-intelligence infrastructure will generate returns quickly enough to justify their cost. Building data centers requires substantial spending on chips, servers, power and other infrastructure. Companies financing those projects with borrowing can also face higher costs when interest rates and bond yields are elevated.
Friday’s session was mixed for AI-related stocks. Micron Technology gained 2.5%, Intel rose 1.7%, Microsoft added 0.7%, and Advanced Micro Devices finished 1.7% higher, the AP reported. Those gains helped limit the decline in major indexes even as most S&P 500 stocks fell.
The previous session had been more difficult for technology stocks. The Nasdaq dropped 2.6% on Thursday, October 22, to 26,008.86, amid concerns about AI spending and rising oil prices, according to market reports. One strong or weak session does not establish a longer-term trend, and investors will be watching company earnings for clearer evidence about how AI investments are translating into revenue and profits.
How the Major Indexes Finished the Week
For the week ending October 23, the S&P 500 fell 0.5% and the Nasdaq lost 0.7%. The Dow gained 0.4%, while the small-cap Russell 2000 rose 2%, according to the AP’s market summary. The S&P 500 remained up about 11.4% for the year through Friday.
These different results show why a headline about “the market” can hide meaningful differences between sectors and indexes. Oil producers may benefit from higher crude prices, while transport companies, manufacturers and consumers can face higher fuel and operating costs. Technology shares, meanwhile, remain sensitive to expectations for future AI-related earnings.
What Investors Will Watch Next
Investors are expected to focus on upcoming results from major technology companies, including Alphabet, Microsoft and Amazon, for clues about AI spending and business demand. Oil prices, Treasury yields and new developments in the Middle East may also influence trading. The Federal Reserve’s upcoming policy meeting and fresh inflation data are additional events markets will monitor.
Market moves can change quickly, and a single week’s performance cannot predict future returns. This report is for general news and information only, not investment advice.
Sources: The Associated Press market summary; Reuters market report.