A tumble in tech leads the stock sell-off as rate cut pessimism rises |
The S&P 500, Nasdaq 100, and Russell 2000 all fell hard as the longest government shutdown in the US came to an end and anxiety over backlogged data triggered pessimism that there won’t be a December rate cut. Traders are now pegging the odds of a cut at next month’s meeting at roughly a coin flip. (Comparatively, a month ago, the odds of another cut were 95.5%.) Tech was the worst-performing sector ETF, and all of the Magnificent 7 stocks fell except for Meta, which eked out a gain.
Goldman Sachs’ basket of high-beta momentum stocks including Palantir and Applied Digital suffered its worst day since Trump’s April tariff announcement. Speculative stocks tied to the AI boom, quantum computing, and energy such as Oklo, CoreWeave, SoundHound AI, Tempus AI, D-Wave Quantum, IonQ, Rigetti, Nebius, Cipher Mining, IREN, POET Technologies, Bloom Energy, and Plug Power were also hard hit. Stocks that moved higher: |
- Alibaba ticked up after Bloomberg reported that the e-commerce giant is set to overhaul its mobile AI app to become a fully functioning AI agent.
- Cisco saw orders from AI hyperscalers accelerate in its most recent quarter, the company reported yesterday after the close, sending its shares higher.
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- Flutter Entertainment, the parent of top US online sports betting app FanDuel, tumbled after it cut revenue guidance as part of a disappointing earnings report issued yesterday after the close.
- The happiest place on Earth is feeling pretty meh today as Disney dropped after its Q4 revenue missed Wall Street's estimates.
- Tilray, Cronos Group, Canopy Growth, and other weed stocks dropped after lawmakers slipped a hemp THC ban into the government funding bill.
- High-flying shares of tech hardware firms like Sandisk, Seagate Technology Holdings, and Western Digital — which make products to deal with the deluge of information and data expected to be produced by the AI database build-out — dropped after a Japanese competitor, Kioxia Holdings, reported a lackluster set of quarterly numbers.
- Bitcoin dropped below $100,000 and treasury firms Strategy and Strive Inc. took a hit as confidence in the digital treasury play faltered.
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Kim Kardashian’s shapewear company might now be the most valuable celebrity-founded brand ever. Read more. |
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Tesla CEO Elon Musk’s other company, xAI, has raised $15 billion in its latest funding round, CNBC reports. That’s $5 billion more than the company had raised in that same round in September. Its valuation remains at a sky-high $200 billion. Read more. |
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- Hims & Hers launches blood test analysis product
Hims expects to introduce more specs, including at-home testing devices, over time. - Michael Burry de-registers his hedge fund, Scion Asset Management, as he warns of market bubbles and hints at “better things” ahead
Scion’s SEC registration was terminated earlier this week.
- Meta overhauls Marketplace with AI insights and collaborative shopping
It still has the same hated default message.
- Ubisoft delays its earnings at the last minute and requests a freeze on trading
Just minutes before its first-half results were due to come out, Ubisoft announced the delay.
- Mangoceuticals’ partnership with Lilly and Novo? News to them.
The situation underscores how badly everyone wants a slice of the GLP-1 revenue pie. - Apple to get 15% cut of purchases in Tencent’s WeChat mini games and apps
That’s 50% of its typical App Store cut, but still presents a huge opportunity for the iPhone maker.
- OpenAI releases GPT 5.1, which can be “Professional,” “Candid,” or “Quirky”
The new “more conversational” model follows instructions better, but backslides on some safety tests. - Disney sold more than $4 billion in Stitch merch in its latest fiscal year
For Disney, “ohana” also happens to mean revenue.
- Microsoft to use OpenAI’s chips to improve its own in-house chips
“As they innovate even at the system level, we get access to all of it,” CEO Satya Nadella said on a podcast with Dwarkesh Patel.
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