S&P 500, Nasdaq end lower as chip stocks weigh

On Thursday, US stocks experienced a decline as crude prices increased due to heightened tensions in the Middle East and a reduction in US oil output, which raised concerns about inflation and the prospect of interest rate hikes. The Nasdaq suffered the largest percentage loss among the major US stock indexes, following its record-high closing two days prior.

The S&P 500 also experienced a moderate decline, while the Dow Jones Industrial Average saw a slight uptick. Semiconductor stocks, which had surged over 80% this year, underperformed, with chipmakers falling 3.4% after a Financial Times report stated OpenAI's annualized revenues were $20 billion less than previously projected. Global crude prices surged on supply worries due to attacks on shipping in the Strait of Hormuz and a decrease in US output caused by hurricane activity.

This led to a 3.6% and 4.1% increase in front-month WTI and Brent crude, respectively. The Federal Reserve raised interest rates in September for the first time since July 2023, and market expectations indicate they will likely maintain rates steady this month, with a 69.2% probability of a December hike.