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Costa Rica Developer Says Anthropic Console Charged $504 Instead of $5.04 After Decimal Input BugMIT Technology Review Roundtable Discusses AI-Proposed Virus BlueprintsCoreWeave Shares Swing as Credit Warnings Collide With Dip-BuyingApple Launches Its Own Smart Home Lineup With HomeView DisplayGoogle’s Pause Point Anti-Doomscrolling Tool Reaches OnePlus DevicesApple’s $1,999 iPhone Duo Draws Strong Preorders as Launch-Day Pickup Sells Out
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Wall Street Slumps as AI Stocks Slide; CNBC Club Downgrades TJX After Rally

Wall Street fell Friday as AI and chip stocks slid, oil and yields rose; CNBC's Investing Club downgraded TJX after its rally.

AI News Feed · 2026-10-17 04:59

The pressure on AI names followed concerns about the rising cost of capital to fund the data center buildout and slowing revenue growth at Anthropic, the club said. The iShares Semiconductor ETF, or SOXX, fell another 3% Friday and has pulled back about 15% since its last positive day on Oct. 5. Intel, Nvidia, Micron and Broadcom are four of the five largest positions in SOXX. The club said it is not ready to add to those names yet, but is watching levels where bearishness looks too extreme against still-strong demand.

Cybersecurity stocks also declined, with CrowdStrike and Palo Alto Networks among the biggest decliners in the club's portfolio. While tech faltered, the market rotated into defensive consumer staples such as Kimberly-Clark, healthcare names such as Eli Lilly and Cardinal Health, and other year-to-date laggards.

Kimberly-Clark drew more than rotational buying. The club said the maker of Kleenex and Huggies received two regulatory approvals for its acquisition of Kenvue and released better-than-feared preliminary third-quarter results.

TJX Companies was a bright spot, with shares rallying about 5% this week. But the club said it is formally downgrading TJX to a hold-equivalent 2 after the run. The off-price retailer's stock is still down about $3 from where it traded before the company in August reported a big slowdown in its TJ Maxx and Marshalls division. The club said it viewed the slowdown as self-inflicted and fixable, and added to its position three times as the stock slid from $140 to $138 and down to $125. The rebound from lows to $147 on Friday, combined with steady buying, pushed the TJX position size to about 4.25%. The club said it would take profits Friday to right-size the position if it were not restricted from trading.

Earnings season picks up next week, though only two companies in the club's portfolio are scheduled to report. Capital One reports Tuesday after the closing bell, and Meta Platforms reports Wednesday night. Other companies reporting include 3M, GE Aerospace, RTX, Lockheed Martin, General Motors and former club name Honeywell Technologies, as well as Tesla. In technology, IBM, Lam Research, Western Digital and Texas Instruments report. Airlines, railroad operators, regional banks, American Express, Netflix, Procter & Gamble and oilfield services companies SLB and Halliburton also fill the calendar.

On economic data, the club said the schedule is lighter with no jobs or inflation reports. It will watch housing starts, building permits, October S&P Global U.S. Manufacturing and Services PMI, and the University of Michigan's survey on consumer sentiment and one-year inflation expectations.