Wall Street slides as valuation fears, rate-cut doubts weigh on markets
NEW YORK: Wall Street's main indexes fell on Tuesday (Nov 18) as concerns over high valuations and fading hopes of a Federal Reserve rate cut pressured major tech stocks, while investors looked ahead to Nvidia’s earnings and key US data later this week.
Amazon dropped 2.3 per cent, while chipmakers AMD and Intel slid sharply. At 9.33am ET, the S&P 500 and Dow Jones Industrial Average both touched one-month lows, with the Nasdaq also lower.
Markets are now awaiting the long-delayed September jobs report on Thursday, expected to confirm signs of a cooling labour market.
TECH STOCKS UNDER PRESSURE
Nvidia’s results, due after Wednesday’s close, are seen as a test of whether the AI-driven rally can continue. Alphabet shares were also weaker after CEO Sundar Pichai said no company would be immune if the AI boom collapses.
Technology stocks were the worst hit, down 1.5 per cent. Home Depot fell more than 3 per cent after cutting its full-year profit forecast, dragging the consumer discretionary sector lower.
The CBOE Volatility Index rose to a one-month high as investors priced in a roughly 50 per cent chance of a December rate cut, sharply down from a month ago.
