The Dow Jones slipped 0.79% to 47,873.64. The Small Cap 2000 fell 1.60% to 2,411.50. Nvidia dropped about 4%. Tesla sank more than 6%. Alphabet and Broadcom fell around 5%. Disney plunged 9% after weak revenue. Traders rotated out of high-valuation tech and into lower-valuation sectors as volatility rose.
The US government reopening added fresh uncertainty as key inflation and jobs reports remain missing after the record 43-day shutdown. The White House warned some data may never be released. That leaves markets flying blind and complicates expectations for the Federal Reserve’s December meeting.
Why Nasdaq 100 sinks nearly 2% as the US government reopens: why the stock market is down today with Nasdaq and Small Cap 2000 leading losses. (Image credit – The Kobeissi Letter /X account)
Odds of a rate cut have dropped to nearly 50-50 from 95% a month ago. Treasury yields ticked higher and added pressure on tech. Analysts warned the shutdown could trim GDP by about $11 billion by 2026, according to the Congressional Budget Office.
Cisco offered a bright spot with a gain of more than 4% after strong AI-related demand and upbeat guidance. But heavy losses in megacaps dragged the broader market lower. Small caps fell sharply as recession fears resurfaced. Investors expect choppy trading in the days ahead as missing economic data, shifting rate expectations, and stretched tech valuations drive uncertainty. The Nasdaq 100 remains the weakest part of the market and continues to pull major indices lower.
US stock market crashes today:
Major US equity indices today:
- Dow Jones: 47,873.64, down 381.18 points (−0.79%)
- S&P 500: 6,776.03, down 74.98 points (−1.09%)
- Nasdaq: 22,997.79, down 408.66 points (−1.75%)
- Small Cap 2000 (Russell 2000): 2,411.50, down 39.30 points (−1.60%)
All indices are showing notable declines, with the Nasdaq and Small Cap 2000 experiencing the largest percentage drops. This indicates broad-based selling, especially hitting tech and small-cap stocks harder than blue chips.
Nasdaq Composite fell almost 1.8% as megacap tech names sank. Nvidia tumbled about 4%. Tesla slid more than 6%. Alphabet and Broadcom dropped 5%. Arm also fell sharply. Traders rotated out of expensive tech stocks as valuations look stretched. Disney plunged 9% after weaker revenue. The selling in chipmakers and streaming pushed the Dow off its recent record high. The S&P 500 slipped 1.1% as tech and communication services led the decline.
President Trump signed a bill reopening the government after 43 days. The shutdown delayed inflation and jobs data. The White House warned some reports may never be released. Markets lost clarity. Investors now face a data blackout that complicates expectations for the Federal Reserve’s next move. Traders fear the missing reports could distort how the Fed reads the economy. The CBO estimated shutdown-related disruptions could cut GDP by roughly $11 billion by 2026.
Rate-cut expectations shifted sharply. A month ago markets priced in a 95% chance of a December cut. Today odds sit close to 50-50. Fed officials delivered hawkish comments on Wednesday. The lack of economic data adds uncertainty. Treasury yields moved higher. That pressured high-growth tech even more. Traders expect more volatility until the data flow normalizes.
Which corporate earnings are moving markets today?
Cisco jumped more than 4% after reporting stronger AI-related spending from cloud hyperscalers. The company lifted its full-year profit and sales forecasts. That contrasted with Disney’s 9% drop after missing revenue expectations. Nvidia, Broadcom, Tesla, and Arm all weighed heavily on tech indexes. Weak sentiment across megacap names accelerated the Nasdaq’s slide.
Here are today’s top gainers and top losers as the market extends its sharp decline:
APA Corporation jumped about 6.28%, leading the gainers. Albemarle rose around 6.11%. Cisco gained roughly 4.46% after strong earnings and higher guidance. On the losing side, Super Micro Computer dropped nearly 5.64%. Teradyne fell about 5.24%. Broadcom slipped roughly 5.19% as tech selling deepened. These moves highlight a clear rotation, with energy and industrial names gaining while major tech and semiconductor stocks take the biggest hits.
What broader trends are shaping today’s sell-off?
Investors rotated into lower-valuation sectors. Healthcare and industrials held firmer ground. Small caps fell 1.6% as economic uncertainty returned. Analysts now expect choppy trading as markets adjust to missing government data, rate uncertainty, and stretched tech valuations. The Nasdaq remains the most vulnerable index in this environment.
Source link
