US Stock Market Today: S&P 500 Drops 0.1% & NASDAQ Rises 0.2% as Tech Shares Lead a Broad Market Selloff

US markets faced broad pressure as traders reduced expectations for a Federal Reserve interest-rate cut in December. Major equity benchmarks moved lower in early New York trading. The S&P 500 dropped 0.01% by mid-morning and slipped below its 50-day moving average. The NASDAQ 100 rose 0.2%, while the Dow Jones Industrial Average declined 0.6%. Momentum stocks led the decline, with the artificial-intelligence sector seeing sharp losses.

Cryptocurrencies also faced selling. Bitcoin fell 2.5% to trade near $96,300. Ether gained slightly but failed to offset broader weakness in digital assets. Risk appetite weakened as traders reassessed the likelihood of near-term policy easing.

Bond markets moved in the opposite direction. The yield on 10-year US Treasuries slipped to 4.10%. Two-year yields also edged lower. European bond markets showed mixed moves. Germany’s 10-year yield rose to 2.70%, while the UK’s 10-year yield climbed to 4.55%.

A lack of government data added uncertainty for investors. The recent US government shutdown delayed key economic reports, leaving markets without crucial indicators. Policymakers and traders continue to operate with limited visibility. Analysts expect the data flow to resume soon, but they warn of potential volatility as new reports arrive.

Tech Stocks Extend Losses Amid Policy Concerns

High-growth technology companies remained under pressure. The NASDAQ 100 recorded a fourth straight decline, marking its longest losing streak since March. Communication services also weakened. Applied Materials suffered one of the largest drops after projecting lower quarterly sales and reporting business challenges linked to trade restrictions in China.

Volatility increased across the market. The Cboe Volatility Index rose above 21, reflecting growing concern about policy tightening risks. Some investors argued that a market retracement had become likely after a strong rebound driven by AI-related optimism and expectations of lower rates.

A number of analysts view the downturn as a temporary pullback. Some market strategists maintained that the recent slide could offer opportunities for investors seeking long-term exposure to technology. Others stressed that the failed rebound in the sector raised questions about the strength of the broader market trend.

Global Developments Add to Market Tension

Commodity markets also shifted. West Texas Intermediate crude rose 2% to $59.86 a barrel as geopolitical concerns increased in regions including Russia and Iran. Spot gold fell 2.5% to $4,067.83 an ounce.

In Europe, the Stoxx 600 dropped 1.3% as investors reacted to political and fiscal uncertainty in the UK. The British pound slipped to $1.3167. The euro held steady at $1.1627. The Japanese yen strengthened slightly against the dollar.

• Merck & Co. will buy Cidara Therapeutics, which develops a flu treatment. The deal helps offset Keytruda’s coming patent loss.

• Google will adjust its ad tech tools to meet an EU order. The company will not pursue the breakup that regulators prefer.

• BHP Group was ruled liable for damages tied to a fatal Brazil dam collapse. The case moves closer to a multi-billion-dollar payout.

• Allianz raised its full-year profit outlook after strong third-quarter results. Growth came from insurance and asset management.

• BHP Group was ruled liable for damages tied to a fatal Brazil dam collapse. The case moves closer to a multi-billion-dollar payout.

• Siemens Energy increased its mid-term targets due to strong turbine and data center demand. Progress at its Gamesa unit also supported the upgrade.

• Richemont reported higher sales as US and Chinese shoppers bought more Cartier and Van Cleef & Arpels jewelry.

• Emirates plans to use SpaceX’s Starlink for faster onboard Wi-Fi. The service still lacks government approval.

• Warner Bros. Discovery changed CEO David Zaslav’s contract. The update protects his stock options if the company is sold.

• BlackRock will invest up to €2 billion in a data center venture with ACS SA.

Corporate news added another layer to the day’s activity. Several major companies announced acquisitions, regulatory developments, and earnings updates. These included moves by Merck, Google, Emirates, BlackRock, and others, each responding to shifting market conditions.

Also Read: US Stock Market Today: S&P 500 Drops 1.3% & NASDAQ Slips 1.7% as Tech Weakens and Ongoing Data Delays Heighten Fed Uncertainty