US Stock Market Wipes Out Recent Gains
The US stock market experienced significant declines on Thursday, erasing recent gains and reaching one-month lows. The downturn occurred as investors reassessed the potential for higher interest rates from the Federal Reserve.
Market Performance Snapshot
The major indexes faced losses:
- The Nasdaq 100 fell by 1.2%.
- The S&P 500 dropped 0.8%.
- The Dow Jones Industrial Average declined by 200 points.
Employment Data and Economic Outlook
Delayed employment data from the Bureau of Labor Statistics (BLS) hinted at stronger-than-expected job growth. This report precedes the Federal Open Market Committee’s (FOMC) December meeting. It helps consolidate market expectations that interest rates will likely remain unchanged next month.
Technology Sector Reactions
In the technology sector, Nvidia saw a notable loss, dropping 1%. Initially, shares opened 5% higher after the company exceeded earnings estimates. Nvidia indicated that demand for AI infrastructure remains robust. However, concerns lingered regarding OpenAI’s commitment to its $100 billion agreement.
Meanwhile, other tech stocks faced steeper declines. Advanced Micro Devices (AMD), Micron, and Oracle all saw their stocks fall between 4% and 9%.
Retail Sector Gains
On a more positive note, Walmart’s stock surged by 6%. This increase followed the company’s recent earnings report, which also included an upgrade in their guidance for the year.
Overall, the stock market’s volatility reflects ongoing uncertainties surrounding interest rates and the valuation of tech companies, particularly in the AI sector.
