view original
postUS stocks fell sharply on Friday, set to add to Wall Street’s steepest sell-off in over a month as ebbing faith in a December interest-rate cut puts pressure on riskier assets like Big Techs.
The Dow Jones Industrial Average (^DJI) slid over 1%, or more than 500 points, while the S&P 500 (^GSPC) dropped around 1.3%. The tech-heavy Nasdaq Composite (^IXIC) tumbled around 1.8%.
Another sea of red grips stocks after Thursday’s bruising session, which saw the major indexes log their steepest one-day declines in over a month.
Tech is again at the forefront, as AI concerns drive an exodus to less hotly valued sectors. Tesla (TSLA) shares fell 3% in early trading to break below $400, on the heels of its worst day since July. Nvidia (NVDA), moved 2.6% lower on the heels of a 3.6% drop Thursday.
Also suffering, bitcoin (BTC-USD) fell below $96,000 for the first time in over six months, continuing a slide that has seen the cryptocurrency sink over 20% since its October peak.
The mood is gloomy as worries grow that the Federal Reserve will slow its pace of policy easing, given the increasingly hawkish tone taken by its officials. Traders now see less than 50% odds of a quarter-point rate cut next month, down from about 95% a month ago. Minneapolis Fed President Neel Kashkari became the latest to lose appetite for rate cuts as he flagged “resilience” in the US economy and continued concerns over inflation.
Policymakers lack insight into price pressures as well as the jobs market after the record six-week federal shutdown. Questions still remain as to what data will end up being released — and in what form it will be unveiled — now that the government has reopened.
In a nod to price pressures, President Trump is preparing to make substantial cuts to tariffs to bring down high food costs, a concern for voters in recent state and local elections. Several trade deals with Argentina, Brazil and other Latin American countries also aim to make the likes of bananas and coffee more affordable.
Read more: The best from Yahoo Finance Invest: Big moments, bold insights from top voices
LIVE 11 updates
-
Stocks slide at the open
US stocks dropped at the open Friday, with tech leading losses as investors rotated out of riskier assets amid growing doubts over the Fed’s path to interest rate cuts following the longest-ever US government shutdown in history.
The Dow Jones Industrial Average (^DJI) fell roughly 0.9%, while the S&P 500 (^GSPC) sank over 1%. The tech-heavy Nasdaq Composite (^IXIC) tumbled around 1.6%.
Tesla (TSLA) and Nvidia (NVDA) dropped 4% and 2.8%, respectively, while Broadcom sank 2.9% after those stocks led a decline in Big Tech names during Thursday’s market selloff.
-
Trump-linked American Bitcoin’s Q3 revenue doubles
American Bitcoin (ABTC) stock fell 13% before the bell on Friday despite reporting a rise in profit. The company, which has Eric Trump as co-founder, chief strategy officer and Donald Trump Jr as a major stockholder, saw its profit more than double in the third quarter.
Reuters reports:
Read more here.
-
Walmart CEO Doug McMillon announces retirement, shares fall
Walmart (WMT) announced Friday that longtime CEO Doug McMillon will retire at the end of January. The company’s head of US operations, John Furner, has been tapped to replace him.
Shares of America’s largest retailer fell by 2.5% ahead of the opening bell.
-
China stocks fall as the country’s economic momentum slows
Economic momentum in China cooled in October, the National Bureau of Statistics of China reported on Friday.
Retail sales in the country grew 2.9% year over year, marking their slowest pace since last year and a cooling from the 3% growth seen in September. Results from Singles Day, China’s major shopping holiday in November, also showed modest growth, adding to concerns of a spending slowdown.
Industrial production in China rose 4.9%, its smallest gain since January. Investment in fixed assets decreased by 1.7% year over year.
US-listed Chinese stocks fell in premarket trading on Friday on the disappointing data:
-
A recession is brewing at the bottom of the K-shaped economy
The post-COVID recession that never arrived still hasn’t come. But that doesn’t mean Americans are in the clear, writes Yahoo Finance’s Hamza Shaban in today’s Morning Brief. He notes:
Read more here.
-
Tesla stock loses more ground after worst day since July
Tesla (TSLA) shares retreated further, down 4% in premarket as the broader tech sector geared up for another sell-off.
The EV maker’s stock is now poised to fall below the $400 threshold, revisiting lows not seen since the middle of September.
Tesla had its worst day since late July on Thursday, closing 6.6% lower after recovering from deeper session losses.
Yahoo Finance’s Pras Subramanian reports:
Read more here.
-
Good morning. Here’s what’s happening today.
-
Oracle hit hard in Wall Street’s tech sell-off over its huge AI bet
Oracle (ORCL) stock fell more than 1% before the bell on Friday and has been among the worst affected by the recent sell-off compared to its Big Tech rivals. The company’s borrowing, which has been used to fund its AI initiatives, has worried investors.
The FT reports:
Read more here.
-
Premarket trending tickers: Warner Bros, Whirlpool and Applied Materials
Warner Bros (WBD) stock rose 3% before in premarket trading on Friday after news that Paramount (PSKY), Comcast (CMCSA), and Netflix (NFLX) were preparing bids for the entertainment group.
Whirlpool (WHR) stock rose 3% before the bell on Friday following news that Investor David Tepper’s Appaloosa Management had purchased 5.2 million shares of the appliance maker.
Applied Materials (AMAT) stock fell 5% in premarket trading on Friday after the chipmaker reported a slowdown in revenue. The company’s first quarter forecast was more upbeat.
-
Bitcoin’s bear market deepens as ETF investors yank $870 million
Bloomberg reports:
Bitcoin (BTC-USD) fell further below the $100,000 mark as a bout of risk aversion sweeping across markets saw investors pull nearly $900 million from funds investing in the token.
The largest digital-asset sank as much as 2.8% to below $96,000 on Friday before paring losses, leaving it more than 20% below a record high reached in early October.
The crypto market remains under strain after $19 billion in liquidations on Oct. 10 in turn erased over $1 trillion from the total market value of all cryptocurrencies, CoinGecko data shows. The liquidations keep coming, with more than $1 billion worth of leveraged crypto bets wiped out in the past 24 hours, according to CoinGlass data.
Meanwhile, exchange-traded funds investing in bitcoin saw net outflows of about $870 million on Thursday, the second-largest daily withdrawal since their debut.
Read more here.
-
Gold rises with government shutdown instability buoying haven demand
Gold (GC=F) prices have been boosted after a month of declines, as uncertainty surrounding data and the aftermath of the government shutdown has led investors to the haven asset.
Bloomberg reports:
Read more here.
