Intel Plummets 29%... Wall Street Indices Close Lower Across the Board

[Anchor]

Wall Street closed lower across the board overnight. The stock price of semiconductor giant Intel plunged nearly 30% in a single day amid concerns over sluggish earnings, serving as a negative factor for semiconductor stocks overall.

Reporting from New York, this is Kim Hyunwoo.

[Reporter]

Overnight on Wall Street, the tech-heavy Nasdaq fell by nearly 3%.

This marks its largest single-day drop since last June.

It tumbled by nearly 4% at one point before paring some of its losses toward the end of the session.

The S&P 500 and Dow Jones Industrial Average also fell by more than 1%, wrapping up the final trading day of October.

The epicenter of the decline was semiconductor maker Intel.

Its stock price plummeted by nearly 29% in a single day, recording its biggest drop in some 50 years.

Although its third-quarter earnings beat market expectations, sell-offs continued amid worries that fourth-term sales forecasts fell far short of expectations and that the sluggish PC market would persist into the first half of next year.

The shockwave spread to the entire semiconductor sector.

Concerns resurfaced over when investments poured into artificial intelligence would translate into returns, causing semiconductor-related stocks that had surged on AI expectations to slide in succession.

The Philadelphia Semiconductor Index, which tracks the stock prices of major U.S. chip companies, plunged over 7%, while Intel's rival AMD dropped nearly 11% and NVIDIA fell over 4%.

[Dennis Fulmer / Chief Investment Officer, Montis Financial: Big tech companies are continuously increasing the proportion of their earnings going toward investments. It was 90% last year, rose to 95%, and now it has exceeded 100%.]

Shares of SK Hynix listed in the U.S. also plummeted by nearly 8%, raising expectations of a significant impact on the South Korean stock market next Monday.

(Photo: Yonhap News / Reported by Lee Hee-hoon | Video by Kim Byung-jik)
※ Please note: This article was translated by AI and may contain errors.