Stock Market Update

[BRIEFING.COM] Technology stocks have extended their losses since the prior update even as Treasury yields retreat. The Nasdaq Composite is down 1.53%, versus 1.4% previously, while the Nasdaq 100 is lower by 1.7% and the PHLX Semiconductor Index is down 3.6%. The Dow, meanwhile, remains near its flat line.

The divergence is notable because lower yields have not provided their usual support for growth stocks. The 10-year note yield is now 5.24%, down from an intraday high of 5.35%, following solid demand at the 30-year bond reopening.

The Financial Times report that OpenAI's annualized revenue is running $20 billion below earlier estimates has added scrutiny to the AI trade. The reported shortfall raises questions about whether revenue growth can keep pace with expectations underpinning the broader AI infrastructure buildout, while semiconductor weakness remains the clearest source of pressure on the Nasdaq.

Separately, the Financial Times reported that Starbucks (SBUX 89.61, -3.97, -4.24%) has worked with advisers on a potential takeover of Chipotle Mexican Grill (CMG 33.04, +2.28, +7.39%), although the status of the proposal and whether a formal offer exists remain unclear.