Yesterday saw stocks notch a nice bump, courtesy of optimism that President Trump's tariffs might be overturned, offering a bullish boost to stocks. But today markets are back to where they were on Tuesday as tech stocks get hammered.
One of the culprits might be the interest-rate-cut narrative. Kicking off a long day of commentary from central bank leaders, the Chicago Fed's Austan Dean Goolsbee said he was "uneasy" about proceeding with rate cuts in December, amid the lack of economic data created since the government shut down.
Around the time of the comments, the Nasdaq (-1.6%) began to trend lower, followed by the small-cap-focused Russell 2000 (-1.47%), the S&P 500 (-0.99%) and the Dow (-0.93%). Gold and bitcoin also sustained losses over the past few hours.
At the core, tech stocks like Nvidia (-2.4%) and Advanced Micro Devices (-7%) seem to be leading the broader declines after Alphabet (-0.85%) announced its 7th-generation AI chip, injecting fresh competition into the computing game.
Thursday Reading:.
Also probably troubling investors today: The U.S. Global Jets ETF (-1.8%) is seeing some marked declines after the Federal Aviation Administration said it would slash up to 10% of flights across 40 U.S. airports, citing staffing safety.
The full list of affected facilities should be announced today, with carriers planned to cancel up to 4% of flights tomorrow, while building up next week.
TurboTax Via TheStreet
-- Noah Weidner, Markets Reporter
