MetraviseTech sell-off caps Wall Street's worst week since June
In brief
- Tech slides: The Nasdaq Composite fell -2.15% on Friday as investors shunned AI stocks, capping its worst week since June.1,2
- Oil spikes: WTI crude rose +2.99% as attacks on ships near the Strait of Hormuz hit a record, keeping supply risk in focus.1,3
- Fed goes quiet: Fed Chair Warsh gave no rate signal before the blackout began, leaving the Oct. 27-28 meeting an open question.4,5
What it means
Three pressures met this week: doubts about the AI trade, a jump in oil prices and an unclear Fed path.1,4 The S&P 500 lost -1.97% over five sessions, while the Nasdaq 100 fell -5.52%. The gap shows the damage was concentrated in growth and AI names rather than spread evenly across the market.
The week in review and where money is flowing
In Metravise's sector data, Consumer Staples led over the past month, with a relative reading of -2.5 pts versus the S&P 500. Inside it, Discount Stores was the strongest industry at +6.5 pts, followed by Household & Personal Products at +1.5 pts. Technology sat in the Lagging group with weakening momentum, while defensive sectors were improving, a clear tilt toward safety.
Oil: Hormuz in focus
Reported attacks on ships in or near the Strait of Hormuz reached a record high, and an oil tanker reportedly hit a mine.3 WTI closed at $98.99, and the 10-year yield edged up to 5.10%. Energy was among the improving sectors in Metravise's data, in line with the supply worries.
Market mood
The VIX jumped +22.05% to 20.09, in the Tense zone, as traders positioned for further gains in volatility.2 The equity put/call ratio was 0.62 against a 5-day average of 0.59, an average reading that points to hedging without panic.
What to watch this week
Times are US Eastern (ET).
- Thu 08:30Initial jobless claims (weekly)Initial jobless claims for the week ending Oct. 17 are due at 8:30 ET on Thursday.6
- TueCapital One earningsCapital One reports after the close, a read on consumer credit in a week light on economic data.7
- WedMeta Platforms and Tesla earningsMeta Platforms and Tesla report on Wednesday, a test for the AI trade after this week's slide.7
- ThuLeading IndicatorsSeptember Leading Indicators follow; a weaker reading is generally read as a sign of slowing growth.6
Metravise Portfolio
- PortfolioFriday change−3.20%
- —No entries or exits in the last session.
Metravise is an educational research platform — this bulletin is not investment advice. News summaries are based on the footnoted sources; numbers are Metravise data. Past performance is not indicative of future results.
Sources
- Nasdaq slides 2% Friday to post worst week since June, pressured by AI sell-off and oil prices: Live updates — CNBC · Oct 17
- Wall Street's fear gauge is ripping. Traders see it going even higher — CNBC · Oct 17
- Live Updates: Reported attacks on ships in or near Strait of Hormuz reach record high, data shows — CBS News · Oct 18
- Fed's Warsh withholds rate signal, praises recent global tightening — CNBC · Oct 17
- Warsh says Fed is focused on taming rising prices, but gives no hint about next rate hike — NBC News · Oct 17
- Major earnings reports are due next week, but strong results may not be enough to quell market fears — CNBC · Oct 17
- We're downgrading this retail stock after a big comeback. Plus, AI names slide again — CNBC · Oct 17