The final results of the session indicate that the Dow Jones Industrial Average index declined by 0.84%, the tech-heavy Nasdaq fell by 1.90%, and the broad S&P 500 depreciated by 1.12%.
This widespread decline, similar to what occurred on Tuesday, represents “something not seen for some time,” commented Sam Stovall of CFRA, speaking to AFP.
In his view, this can be partly explained because the market is “lacking catalysts likely to support or boost stock prices.”
With the primary earnings reporting season having already concluded, “with third-quarter growth better than expected (…), there is nothing significant that can influence shareholders in the short term,” Stovall noted, “especially since the Federal Reserve will not meet before December.”
Due to the budget impasse in Congress, the longest in U.S. history, which leads to the closure of government agencies and services, investors are deprived of official economic information.
Additionally, privately sourced information does not help provide a clear picture of the state of the economy.
A monthly report released today by the consulting firm Challenger, Gray & Christmas revealed that job cuts in October in the U.S. were the highest for that month since 2003, totaling 153,074.
However, on the previous day, the ADP survey indicated that the private sector created more jobs than it eliminated in October, leading Stovall to conclude that these statistics “somewhat cancel each other out.”
Today’s market decline was led by technology stocks, such as Nvidia (-2.61%), AMD (-5.80%), and Microsoft (-1.98%).
Recent market dynamics have been supported by enthusiasm for the development of artificial intelligence (AI) and the completion of commercial contracts amounting to tens of billions of dollars.
However, analysts are beginning to worry about the possibility that some stock prices have risen too quickly and too high, while doubts are growing regarding the ability of tech conglomerates to absorb the colossal costs associated with AI.
