1. The major U.S. indices had one of the worst days in a month, with the S&P 500 down around 1.7 %, the Dow Jones Industrial Average off about 1.7%, and the Nasdaq Composite dropping ~2.3%.
2. Big loss in tech/AI/darling growth stocks — eg. Nvidia fell ~3.6 %, Palantir Technologies ~6.5 %, Broadcom ~4.3 %.
3. Two main macro themes:
A sudden drop in expectations for a rate cut by the Federal Reserve in December: markets now view the odds of a cut as just around ~50%.
The recent long U.S. government shutdown (43 days) ending, but leaving behind delayed economic data, which increases uncertainty about inflation, growth and the Fed’s next move.
4. Rising bond yields add fuel: When yields go up, future earnings (which tech stocks rely on) get discounted more heavily.
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