FX.co ★ Wall Street Continues Sharp Sell-Off

On Friday, U.S. stock markets experienced a downturn, with notable indices such as the S&P 500 and the Nasdaq each declining by 1% and 1.6%, respectively, both reaching their lowest point in a month. The Dow Jones was similarly affected, dropping approximately 400 points. The technology sector saw significant pressure, as investor apprehension over potentially overvalued AI-related stocks and the risk of a speculative bubble increased. Additionally, there’s growing unease that the Federal Reserve might hold off on cutting interest rates next month, following cautious remarks from several policymakers regarding the necessity of another rate reduction. Consequently, market expectations for a 25 basis point cut in December have decreased to slightly below 50%, falling from nearly 65% earlier in the week. There was a marked decline in consumer discretionary and communication services stocks. Notably, Nvidia fell by about 2.7%, Tesla slipped by 3.4%, and Applied Materials saw a decline of over 5.5% after reporting lower-than-expected earnings and revenue. In contrast, Verizon experienced a modest rise of 0.5%, fueled by reports that the company may be considering eliminating 20,000 jobs. Over the course of the week, the S&P 500 has risen by approximately 0.1%, the Dow has increased by roughly 1%, while the Nasdaq has decreased by 0.6%.