Stocks declined in midday trading, mainly due to falling technology shares, which have struggled throughout November.
Dow and Nasdaq Indices Face Significant Losses
The Nasdaq composite led the decline, falling more than 2%, with major losses in chip stocks like Nvidia and Broadcom. Tesla’s shares dropped 7%. The market turmoil coincided with the government reopening after a lengthy shutdown, causing ongoing flight disruptions and delays in economic data reporting.
Investors have been shifting away from major tech stocks that have driven market gains this year. While the Nasdaq is down for the month, the Dow industrials maintained some gains after recently reaching a record high.
Company Performance Influences Market Trends
On Thursday, the Dow fell about 600 points, primarily impacted by Disney shares, which fell 7% due to disappointing revenue reports. In contrast, Cisco’s stock approached a 25-year high after the company raised its outlook. Additionally, Verizon shares gained over 1% after reports of planned job cuts in response to cost management.
Investors are also evaluating how delayed economic reports could influence the Federal Reserve’s future policy decisions. A White House official indicated that the October unemployment rate may not be released but expected labor data will still come out.
Futures Market and Currency Strength
On Thursday, futures pricing suggested just over a 50% chance of an interest-rate cut in December, a decrease from over 60% the previous day. Precious-metal futures rose, and silver reached record highs.
The Swiss franc gained strength against the dollar amid hopes for reduced U.S. tariffs, following President Trump’s comments about potentially lowering levies on Swiss goods.
