Stock Market Update

[BRIEFING.COM] The major averages continue to retreat this morning, with the S&P 500 (-1.5%), Nasdaq Composite (-2.6%), and DJIA (-0.7%) extending their losses as selling pressure intensifies across technology stocks. Semiconductor stocks remain particularly weak, with disappointing earnings reactions adding to concerns about the outlook for AI-related investment and demand.

Intel (INTC 66.16, -25.90, -28.14%) is plunging after issuing Q4 earnings and revenue guidance well below expectations, overshadowing an EPS beat and strong growth in its data center business. The company is struggling with a weakening PC market as elevated memory prices pressure demand, while manufacturing disruptions and supply constraints are limiting its ability to capitalize on robust server CPU demand. Management also expects a sharp sequential decline in profitability next quarter, adding to concerns about the pace of its turnaround.

Sandisk (SNDK 1194.65, -135.40, -10.18%) is another major semiconductor laggard despite beating Q1 earnings expectations and issuing Q2 EPS guidance above consensus. Exceptional data center growth and strong cash generation were overshadowed by relatively modest revenue guidance upside and management's caution surrounding seasonal demand trends in the March quarter. The disappointing reaction highlights the demanding expectations facing memory stocks following their substantial gains this year, with investors increasingly focused on the sustainability of pricing strength and AI-driven growth.