US Housing Market Hits Record Low as Tech Stocks Slide Amid Geopolitical Tensions

By / / Breaking News

This update was written automatically with AI from market data and news wire reports, and published without review by a person.

Key Takeaways

  • US pending home sales plunged 7.3% in September to a record-low index level of 66.0, far exceeding the 0.5% decline analysts had expected.
  • The Nasdaq 100 (NDX) fell 1% as high-growth AI infrastructure firms like CoreWeave (CRWV) saw shares drop 6% to their lowest levels since May 2025.
  • US Treasury Secretary Scott Bessent reported a "panic" in Iran as its currency collapses under the weight of intensified sanctions and regional conflict.
  • China's Ministry of Commerce (MOFCOM) issued a formal opposition to a US order banning the use of DeepSeek AI tools, labeling the move "discriminatory."
  • German investor sentiment deteriorated more than anticipated, with the ZEW Indicator of Economic Sentiment falling to 28.1 points in October.

Housing Market Hits Historic Lows

The US housing market faced a severe contraction in September, with pending home sales tumbling 7.3% month-over-month to the lowest level since the National Association of Realtors (NAR) began tracking the data in 2001. The Pending Home Sales Index fell to 66.0, driven primarily by mortgage rates that reached 7.40%, the highest in nearly three years. NAR Chief Economist Lawrence Yun noted that while job growth remains steady, housing affordability is being crushed by the rapid rise in borrowing costs and persistent inflationary pressures from energy prices.

Tech and AI Stocks Under Pressure

Equity markets saw significant volatility on Tuesday as the Nasdaq 100 (NDX) declined 1% and the S&P 500 (SPX) slipped 0.3%. The sell-off was concentrated in debt-reliant AI infrastructure companies, with CoreWeave (CRWV) leading the decline by falling 6%. Investors are increasingly concerned about the high cost of capital required to fund massive AI data center expansions, especially as 10-year Treasury yields hover near multi-year highs.

Geopolitical Tensions and Energy Concerns

US Treasury Secretary Scott Bessent highlighted the escalating economic pressure on Tehran, stating that "panic is starting to set in" as the Iranian currency collapses. Meanwhile, US Defense Secretary Pete Hegseth held an unannounced meeting with Israeli Prime Minister Benjamin Netanyahu on Monday to discuss potential military operations. These developments have kept energy markets on edge, with US Energy Undersecretary Haustveit confirming that the administration is working with refiners to boost production as diesel prices remain at levels higher than desired.

International Friction and Economic Sentiment

In Asia, China's MOFCOM slammed the US government's decision to ban federal agencies from using DeepSeek AI tools, accusing Washington of "politicizing tech issues under the guise of national security." In Europe, the German ZEW poll provided a mixed outlook; while current conditions improved slightly, investor expectations fell to 28.1, missing the 30.0 forecast. Analysts attribute the waning confidence to surging energy costs and the fragile state of the Eurozone's industrial recovery.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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