S&P 500 loses 95 points as technology rout worsens

The stock market is becoming increasingly unpleasant.

At the day's lows, the S&P 500 has dropped 98 points to 7706. The 1.3% decline is the steepest since late July and erases most of this month's gains. It is also a day marked by widely divergent performances.

Both AI and rate-sensitive stocks are suffering, while defensive names surge. Nvidia is down 3.2% as part of a broad sell-off in chip and memory names including:

• AMD -5.6%
• Broadcom -3.1%
• Micron -3.2%
• Intel -4.1%
• Dell -11.9%

Other megacap tech names are also being hit by profit-taking and AI concerns.

• GOOGL -1.5%
• MSFT -1.5%
• META -3.6%
• TSLA -2.2%
• ORCL -7.9%
• PANW -5.1%

Apple is bucking the trend with a 0.3% gain, a sign that it is increasingly seen as outside the tech bubble.

In the financial sector, Bank of America shares are down 5.8% after missing earnings earlier today. Notably, BAC was upbeat on the US economy and consumer.

"We believe that Bank of America, our clearest economic signal comes from the daily activity of the 70 million clients and thousands of businesses that bank with us. And the message has been consistent. Consumers continue to spend with year-to-date money moving up5% from2025... and that’s similar to what it was for the third quarter and similar to what has shown up so far in early October," said CEO Brian Moynihan.

CFO Alastair Borthwick also talked about improving credit and said "it’s helped a great deal that the consumer is so strong and that the economy is strong. So that is just another piece of that evidence... that the economy is in a good place at this point."

Additionally, the bond market has reversed its earlier losses. This means 10-year yields are now lower on the day after spiking earlier. Even 2-year yields are up only 2.7 bps after jumping by 15 bps in the aftermath of CPI. Clearly, some market participants are sniffing out weakness.

From a technical perspective, the tendency is to lean against the minor support trendline.