As investors booked profits after the longest government shutdown in history ended, Wall Street's major indices saw their worst session in a month.
US stock market crash: As investors booked profits after the longest government shutdown in history ended, Wall Street's major indices recorded their weakest performance in a month.The biggest single-day percentage decline in more than a month was seen by all three of the main U.S. stock indices.
The Dow Jones Industrial Average sank 1.65% to close at 47,457.22, the Nasdaq plummeted 2.29% to 22,870.36, and the S&P 500 declined 1.66% to close at 6,737.49.
US stock market crash: Leading losers and winners
As investors became wary about exorbitant valuations fueled by enthusiasm for artificial intelligence (AI), shares of a number of top-performing U.S. stocks fell.
The most valuable firm in the world, Nvidia, saw a 3.6% decline, Tesla saw a 6.6% decline, and Broadcom saw a 4.3% decline.
Consumer discretionary led the declines with 2.73% across nine of the eleven S&P 500 sector indexes.
After revealing that it might have a protracted conflict with YouTube TV on the distribution of its cable channels, Walt Disney's stock fell 7.8%. Cisco Systems, on the other hand, saw a 4.6% increase in stock price following an improvement in its full-year profit and sales forecast, which was bolstered by robust demand for its networking solutions.
As investors became wary about exorbitant valuations fueled by enthusiasm for artificial intelligence (AI), shares of a number of top-performing U.S. stocks fell.
The most valuable firm in the world, Nvidia, saw a 3.6% decline, Tesla saw a 6.6% decline, and Broadcom saw a 4.3% decline.
Consumer discretionary led the declines with 2.73% across nine of the eleven S&P 500 sector indexes.
After revealing that it might have a protracted conflict with YouTube TV on the distribution of its cable channels, Walt Disney's stock fell 7.8%. Cisco Systems, on the other hand, saw a 4.6% increase in stock price following an improvement in its full-year profit and sales forecast, which was bolstered by robust demand for its networking solutions.
The US stock market crashed; why?
Due to growing concerns about inflation and conflicting opinions among Federal Reserve officials over the health of the U.S. economy, investors reduced their expectations of interest rate decreases, which caused Wall Street to close significantly lower on Thursday.
The market-implied odds of a December rate cut have dropped to about 50% as more Fed officials have voiced caution in recent days about moving forward with further rate cuts. Despite two rate cuts earlier this year, officials cited persistent price pressures and a comparatively stable labor market.
The probability that the Fed would lower interest rates by 25 basis points in December has dropped to 51% from 61% earlier in the week, according to CME FedWatch data.
Due to growing concerns about inflation and conflicting opinions among Federal Reserve officials over the health of the U.S. economy, investors reduced their expectations of interest rate decreases, which caused Wall Street to close significantly lower on Thursday.
The market-implied odds of a December rate cut have dropped to about 50% as more Fed officials have voiced caution in recent days about moving forward with further rate cuts. Despite two rate cuts earlier this year, officials cited persistent price pressures and a comparatively stable labor market.
The probability that the Fed would lower interest rates by 25 basis points in December has dropped to 51% from 61% earlier in the week, according to CME FedWatch data.
In the meantime, the 43-day U.S. government shutdown that had alarmed markets and disrupted the usual delivery of economic statistics came to an end.
However, despite the US Dollar Index's decline back around 99, gold prices are still high at almost $4,200 per ounce, despite dwindling hopes of a rate decrease by the Federal Reserve.
However, despite the US Dollar Index's decline back around 99, gold prices are still high at almost $4,200 per ounce, despite dwindling hopes of a rate decrease by the Federal Reserve.
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