US stock markets closed sharply lower on Monday, marking a day of significant declines across major indices. The Dow Jones Industrial Average fell approximately 1.18%, while the S&P 500 experienced a decrease of 0.92%. The Nasdaq Composite, known for its heavy presence of technology stocks, declined roughly 0.84%. Investors are closely monitoring upcoming Federal Reserve decisions, delayed economic data, and key earnings reports, which are anticipated to shape market sentiment in the near term.
In a notable exception, shares of Alphabet rose approximately 3.1%, reaching $285.60 per share after Berkshire Hathaway announced an increased stake in the company. During the trading session, Alphabet’s stock moved between $284.23 and $294.50, nearing a 52-week high.
On the other hand, Nvidia’s stock saw a decline of over 2%, as concerns regarding the sustainability of demand for AI hardware loomed ahead of its forthcoming earnings report. This drop reflects broader investor apprehension in the tech sector.
Investors are also keeping a close eye on the upcoming September nonfarm payrolls report—the first significant economic data release following the US government shutdown—as well as the Federal Reserve’s October meeting minutes. Though the minutes may be somewhat outdated, they could offer insights during a period of minimal economic data.
Market expectations regarding a potential Federal Reserve rate cut in December have diminished. Futures traders are currently pricing in a roughly 45% probability of a rate cut, a decrease from the 60-70% range that was indicated earlier in the month, according to data from the CME FedWatch tool.
In cryptocurrency markets, Bitcoin has recently fallen over 2%, dropping below the critical $95,000 mark for the first time since early May. This decline may signal a decrease in risk appetite among investors and could further weaken sentiment within the tech sector.
The broader market is experiencing a correction, with the S&P 500 down over 2% for November after a six-month streak of gains. The index is currently more than 3% below its all-time high, while the Nasdaq has plunged over 5% from its peak, highlighting ongoing caution among investors, particularly in technology and speculative assets.
Looking ahead, the upcoming earnings reports from Nvidia, Walmart, and Home Depot are expected to provide crucial insights into corporate margins amid economic challenges, adding to the heightened interest from market participants.
