US Edition5 Forces Sinking Stocks: AI Capex, Fed Doubts, Recession Risk
The S&P 500 and Nasdaq fell 4% and 7% from October highs amid uncertainty about Federal Reserve rate cuts and sustained market volatility, analysts say.
- This past week, U.S. stocks slid, leaving the S&P 500 index down 4 per cent and the Nasdaq Composite down 7 per cent, while tech names like Oracle and Palantir Technologies faced heavy declines.
- Officials face sparse data as the probability of a December rate cut fell to 30% after October Fed minutes and the delayed October jobs report arrives after the December 9-10 meeting.
- Volatility intensified, with the Cboe Volatility Index above 20 and big intraday swings on Thursday, while the S&P 500’s price-to-earnings ratio dipped to 21.8 and nonfarm payrolls rose 119,000 as the unemployment rate reached 4.4%.
- Some market participants see the pullback as overdue after a 38% rally from April through late October, while Jack Ablin said `I don't think investors want to run from the markets` and `What they want to really do is dig in and find opportunities`.
- Forecasted tech capex of $350 and $400 billion for 2026 raises the stakes as the VIX futures curve is unusually flat, signaling volatility into the year-end.
19 Articles
19 Articles
Suddenly, the Fed interest rate cut in December looks like it is very much back on the table
Asian stocks were down this morning and Europe was flat, but investors in U.S. equities were ignoring all that in renewed hopes that the U.S. Federal Reserve will cut interest rates in December, thus fueling asset markets with a new round of cheaper money. Nasdaq 100 fixtures were up 0.46% this morning, premarket. S&P 500 futures were up 0.25%, after the index closed up 0.98% on Friday. Last week, Wall Street seemed to have decided that a Decemb…
Investors eye holiday season turbulence amid AI and rate cut doubts
NEW YORK — Stock market investors are preparing for a turbulent year-end sparked by uncertainty over near-term Federal Reserve interest rate cuts and mounting worries that artificial intelligence companies, which have propelled the market to new records this year, are overvalued.
Analysis:Investors eye holiday season turbulence amid AI and rate cut doubts
NEW YORK :Stock market investors are preparing for a turbulent year-end sparked by uncertainty over near-term Federal Reserve interest rate cuts and mounting worries that artificial intelligence companies, which have propelled the market to new records this year, are overvalued.The market continued to slide t
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