The S&P 500, NASDAQ 100, and Dow Jones Industrial Average all declined as technology shares led a broad market retreat. Labor data added further pressure on Wall Street and triggered a rally in government bonds.
By mid-morning New York time, the S&P 500 fell 0.9%, the NASDAQ 100 dipped 1.6% and the Dow slipped 0.95%. The Russell 2000 dropped 1.4%, while the Bloomberg Magnificent 7 Index sank 1.6%, signaling weakness in large growth stocks.
New reports pointed to a cooling US labor market and reshaped expectations for Federal Reserve policy. Challenger, Gray & Christmas reported 153,074 announced job cuts in October, almost triple the level a year earlier, led by technology and warehousing.
Revelio Labs estimated that US nonfarm employment fell by 9,100 jobs in October after a gain in the prior month.
Traders increased bets that the Fed will cut interest rates again in December. Money-market pricing now implies about a 60% chance of a quarter-point move, even as inflation near 3% still exceeds the central bank’s 2% target.
US government bonds advanced as investors rotated toward fixed income. The 10-year Treasury yield dropped seven basis points to around 4.09%, while the two-year yield fell to 3.56%.
Currency markets adjusted to the lower yields and softer growth tone. The Bloomberg Dollar Spot Index eased 0.1%, while the euro rose 0.3% to $1.1530 and the British pound gained 0.3% to $1.3090. The Japanese yen strengthened 0.6% to 153.23 per dollar.
Commodities showed mixed moves as investors reassessed global demand. West Texas Intermediate crude futures fell 1.2% to $58.88 a barrel, while spot gold traded close to flat despite the weaker dollar and lower yields. Bitcoin dropped 1.8% to $101,843.61, and Ether fell 4% to $3,303.18 as investors trimmed exposure to higher-risk assets.
Technology and other megacap growth stocks led US indexes lower. Tesla shares underperformed within the group, and the Bloomberg Magnificent 7 Index’s 1.6% decline highlighted broad weakness among the largest technology names. The tech-heavy NASDAQ 100 fell 1.5%, outpacing losses in the broader S&P 500 and intensifying concerns about narrow leadership.
Chipmakers also reacted to earnings news. Qualcomm delivered an upbeat revenue outlook, yet its stock slipped as investors looked for even stronger guidance after a strong run in semiconductor shares.
Amazon attracted attention as investors reassessed the company’s AI and cloud strategy. The stock has gained 12% over four sessions after Amazon Web Services reported faster revenue growth and the company announced a cloud deal with OpenAI, reinforcing Amazon’s role in the race to provide AI infrastructure.
Key company and sector headlines included:
Datadog, DoorDash, and Duolingo stood out among notable stock movers following earnings and guidance updates.
Arm Holdings issued a bullish revenue forecast, supported by demand for chips used in artificial intelligence data centers.
Snap surged after announcing a $400 million partnership with Perplexity AI to integrate an AI-powered search engine into Snapchat.
Boeing advanced after a $1.1 billion settlement reduced legal risk related to earlier 737 Max crashes.
Peloton started a voluntary recall of Bike+ units in the US after reports of seat-post failures.
Amazon, Microsoft, Alphabet, and Oracle stayed in focus as investors tracked cloud computing growth and heavy investment in AI infrastructure.
Boeing avoided criminal charges tied to the 737 Max crashes through a settlement agreement.
Uber entered talks regarding an expansion deal in Turkey involving Getir.
Lucid Group reported a deeper-than-expected quarterly loss linked to slowed production.
Walt Disney signed a multiyear sports betting partnership with DraftKings.
US stocks retreated as tech weakness and rising job cuts signaled a slowing economy. The softer labor data fueled expectations for a December Fed rate cut. Bond yields fell as investors shifted toward safety, while major indexes faced renewed pressure. Markets now await fresh inflation data and Fed guidance for direction.