UPDATE: Wall Street’s main indexes have plunged as technology stocks face renewed selling pressure amid rising US tariff concerns and economic uncertainty. Just moments ago, the Dow Jones Industrial Average fell 266.67 points, or 0.56%, to 47,044.33, signaling a sharp market downturn.
This latest sell-off comes in the wake of warnings from Wall Street executives about potential market pullbacks, particularly affecting AI-linked stocks. Major tech players are feeling the heat; Apple dipped 0.3%, Microsoft dropped 1.6%, and Nvidia fell 1.2%, contributing to a 1.2% decline in the information technology sector.
In a shocking twist, DoorDash plummeted 16% after reporting a third-quarter profit below expectations due to escalating expenses, dragging down the consumer discretionary sector by 1.3%. This news is particularly alarming for investors as it reflects broader struggles within the industry.
As of early trading on Thursday, the S&P 500 lost 37.16 points, or 0.55%, settling at 6,759.13, while the Nasdaq Composite fell 214.51 points, or 0.91%, to 23,285.29. The longest US government shutdown in history is adding to market volatility, leaving investors and the Federal Reserve to navigate decisions without crucial data.
According to global outplacement firm Challenger, Gray & Christmas, layoffs announced by US employers surged in October 2023, reaching the highest level for the month in 22 years. This alarming data contradicts Wednesday’s strong ADP jobs report, further fueling uncertainty about the health of the US labor market.
“We have uncertainty from the Fed decision next month, on where the tariffs are going, with the government shutdown… the markets are a little bit cautious right now,” stated Dennis Dick, chief strategist at Stock Trader Network. He cautioned that, while the market has enjoyed a strong couple of months, a corrective phase is necessary.
In a related development, the US has formalized changes to reciprocal tariff rates with China, just a day after the Supreme Court raised questions about the legality of these duties. Investors are now grappling with a mix of corporate earnings reports that are influencing market sentiment.
Notably, Datadog surged 19% after raising its annual profit and revenue forecasts, while Moderna gained 3.5% following a smaller-than-expected third-quarter loss. Conversely, Elf Beauty saw its shares tumble 32% after forecasting annual sales and profit below expectations.
“The lack of official data accentuates my caution about cutting interest rates further,”
stated Chicago Fed President Austan Goolsbee, echoing the sentiment of investors as they brace for the next Federal Reserve rate decision.
In other market moves, DraftKings rose 2.2% after reports that Disney has signed the company as ESPN’s new sports-betting partner. However, declining issues continue to outnumber advancers by a ratio of 1.21-to-1 on the NYSE and 1.76-to-1 on the Nasdaq.
As we move forward, market participants will be closely monitoring upcoming economic indicators, corporate earnings, and government decisions that could further impact the volatile landscape. Investors are advised to stay alert as these developments unfold.
