Closing Bell Overtime: 10/16/26

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Melissa Lee (1:04)

The Bell is bringing an end to the trading day at the NYSE Axis Capital, ringing the bell, closing out the week at the NASDAQ Garen. Welcome to Closing Bell Overtime. We're live from Studio B at the NASDAQ Market site. I'm Melissa Lee along with Mike Santoli. Stocks falling once again today with chip stocks and the AI trade leading the way lower. Dow losing 180 points, S&P 500 down 1%, 2% loss for the NASDAQ Composite, 2.5% for NASDAQ 100

Mike Santoli (1:28)

CoreWeave once again getting crushed, stock down 12% today, losing a quarter of its value this week despite several Wall Street analysts saying the sell-off is overdone. The selling, whacking software sector as well. The IGV down 5%, Oracle once again a victim there. Only 10 days after joining the S&P 500 In the meantime, Twilio was its worst performer today. Other high momentum areas of the AI buildout including chips, memory, optical and energy all hit hard.

Melissa Lee (1:56)

Investors once again seeking safety in the comfort and dividends of utilities and staples. Energy, the best performing sector today as oil rises. For the week, the Dow managing a gain. S&P 500 down more than 1% NASDAQ indices with the biggest losses. Let's get the first take on the close for the day and for the week. The day itself was interesting. We still had core weave, major pressure on the market there. Even though rates remain sort of tame in the scheme of things.

Mike Santoli (2:22)

Yeah, government rates remain tame. Credit markets remain unsettled. So if you're debt-financed, AI-related, if you're consuming capital to build it, the market doesn't want it right now. It's a tricky spot because the source of most of the earnings growth, really, the lion's share, is coming from these areas where everybody's questioning how sustainable it is. And people want a broader market. You mentioned the Dow is up for the week, the Eco8 S&P is up for the week, and the NASDAQ 100 is down 5.5%.

So it almost never happens kind of smoothly and painlessly. I do think there were some signs, again, in the middle of the day, that it would seem like some forced action, you know, maybe some kind of liquidations going on. There was a real grab for volatility protection in the middle of the day. So who knows if that's an unwind. I would point out, though, the Semiconductor Index, the NASDAQ 100, Oracle shares, all of it, they're coming down to levels that have only been broken in that mid-July selloff. So you see right there for Semi, you see it for NASDAQ 100 So there's a chance you can kind of settle above those levels. For the S&P as a whole, kind of doesn't look like a whole lot. It's down 2.5% off its high. And if you don't break 7600 on the S&P, you're still making higher highs along the way.

Melissa Lee (3:31)

Yeah. But as you mentioned, I mean, careful what you wish for. We see this time and time again. The broader market means that financials outperform. We have consumer discretionary do well. Homebuilders got a bit. Now, all these interest rate-sensitive sort of areas got a bit on the weak. But look what happened to the overall market. We did see sort of weakness across the board. So what do you want here at this point?

Mike Santoli (3:49)

Yeah, we sort of thought that the main source of pressure was treasury yields, you know, kind of getting escape velocity to the upside. So they've now flattened out and come in a little bit on a kind of risk haven bid. And what led today in terms of upside pressure on the S&P? Apple, Exxon, Berkshire Hathaway. So it couldn't get more defensive.

Well, there was also a lot of movement in the energy market on more supply concerns. Pippa Stevens joining us now with more details. And it was kind of a sudden midday surge in crude.