S&P 500 hits record as bond yields reach 2002 highs and chips tumble on OpenAI revenue reset

The S&P 500 rose 1.15% to a record 7,811.54 even as the 10-year Treasury touched 5.35%, a $20 billion recut of OpenAI's reported revenue knocked the semiconductor index 3.4% in fifteen minutes, and Brent held above $104.

Deepakshi

Kristal Research & Marketing team

9 Oct2 min

Key takeaways — AI summary

The S&P 500 gained 1.15% to a record 7,811.54 and the Dow added 0.9%, but breadth was thin: the Nasdaq 100 rose just 0.24% and the Russell 2000 fell 0.9%; Goldman Sachs puts the AI-versus-rest gap at a record 10 points (index +14.1% YTD vs ex-AI +7.2%).
The 10-year Treasury yield touched about 5.35%, its highest since 2002, before finishing the week 3bps lower at 5.24%; with the S&P's trailing earnings yield near 3.7%, stocks sit 1.6 points below Treasuries, the thinnest cushion since 2002.
An FT report recut OpenAI's annualized revenue to about $50 billion from roughly $70 billion (a definitional gross-to-net change), sending the semiconductor index from -1.7% to -3.4% in fifteen minutes, with CoreWeave -7.8%, Oracle -5.6% and Broadcom -4.3%.
September ISM services slipped to 54.9 while its prices index rose to 74.0; FOMC minutes showed all 19 officials backed the hike to 3.75%-4.00% and most see another increase likely by year-end, with markets pricing about a 20% chance for October 28.
SpaceX bought an 800MHz spectrum portfolio to sell wireless direct from satellites, sending T-Mobile -11.7%, AT&T -10.8% and Verizon -10.1%; Schneider Electric agreed to buy PTC for $23.7 billion at a 42% premium; Brent rose 1.65% to $104.42 after a tanker was struck off Qatar.

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