US Opening Bell | Stocks open lower; Intel sinks 27%, Advanced Micro Devices slides 10%; Chip stocks tumble

Market

October 30, U.S. stocks opened sharply lower as investors pared risk ahead of a packed week of earnings and central-bank events. The Dow Jones slipped 0.33% to 52,168.85, the S&P 500 fell 1.21% to 7,626.69 and the Nasdaq Composite tumbled 2.29% to 25,586.11, with tech and chip names leading broad declines.

Intel sank 26.54% after slashing its revenue outlook and warning of margin pressure, Reddit plunged 25.49% as early investors were freed to sell shares, Advanced Micro Devices dropped 9.97% on sector jitters, Silicon Motion Technology lost 8.51% after a quarterly miss, and Amazon.com slid 5.59% on concerns about holiday spending. In contrast, Direxion Daily Semiconductors Bear 3x Shares jumped 20.44% and ProShares UltraPro Short QQQ surged 8.35% as traders sought downside protection.

Lumentum declined 7.24%, SK hynix fell 7.04%, Marvell Technology retreated 6.92%, Tesla Motors slipped 3.15%, Taiwan Semiconductor Manufacturing dropped 3.92% and Caterpillar shed 3.55%, reflecting widespread weakness across growth, semiconductor and industrial bellwethers.

News

Intel cuts full-year revenue forecast. The chipmaker flagged weak PC demand and rising costs, driving its shares down sharply at the open.

Reddit lock-up expiration unleashes wave of selling. Early investors took profits as trading restrictions lifted, knocking the social-media platform’s stock more than 25% lower.

Amazon.com warns of softer holiday demand. Management cited cautious consumer spending in its latest update, sending the e-commerce giant’s shares sliding.

Advanced Micro Devices slumps on sector downgrades. Analysts cut ratings amid concerns about inventory buildup, pressuring the stock nearly 10%.

Silicon Motion Technology misses Q3 earnings estimates. The memory-controller maker said pricing headwinds weighed on margins, sparking an 8% drop.

Direxion Daily Semiconductors Bear 3x Shares spikes as chip sell-off deepens. The leveraged ETF gained over 20%, reflecting traders’ rush into defensive hedges.

ProShares UltraPro Short QQQ rallies with tech weakness. The inverse ETF rose more than 8% as the Nasdaq opened sharply lower.

Lumentum guides below consensus for fiscal Q2. Supply-chain issues and telecom softness dragged the optical-component maker’s stock down over 7%.

Tesla Motors falls after price-cut speculation. Reports of new discounts in key markets raised margin concerns, pushing shares more than 3% lower.

Federal Reserve meeting in focus. Investors braced for fresh policy signals this week, contributing to broad risk aversion in equities.