Dow and Nasdaq Hold Key Support – Rebound Tomorrow on Waller’s Remarks?
The Dow and Nasdaq extended their slide as tech weakness, shifting rate expectations, and pre-earnings caution set the tone for a turbulent
Quick overview
- The Dow and Nasdaq experienced declines due to tech weakness and shifting rate expectations, leading to a turbulent market start.
- Investors are cautious ahead of Nvidia's earnings report, which is expected to face scrutiny due to high valuations.
- The Nasdaq was particularly affected by pressure on high-growth and AI-linked stocks, while the Dow found temporary support at its 50-day moving average.
- Overall, the market signals caution as major indices pull back, reflecting concerns over valuations and upcoming economic data.
Live DOW Chart
The Dow and Nasdaq extended their slide as tech weakness, shifting rate expectations, and pre-earnings caution set the tone for a turbulent Monday.
Market Mood Turns Sour
A downbeat start to the week saw risk assets come under pressure, with investors unloading positions across major sectors. Tech stocks were hit particularly hard as traders braced for Nvidia’s upcoming earnings — a report widely expected to face scrutiny given its lofty valuation and stretched expectations.
Rate-Cut Odds Shift the Narrative
The dominant market theme centered on fading expectations for a December FOMC rate cut. As the probability of imminent easing declined, short sellers capitalized on the sentiment shift. Yet, not everyone at the Fed is pushing in the same direction — Governor Waller reiterated his support for a 25bp cut at the December 9–10 meeting, though he noted that an improving labor market could lessen the need for immediate action.
Pressure Mounts on the Nasdaq
The Nasdaq once again found itself at the center of the selloff, weighed down by weakness across high-growth and AI-linked names. Traders remain cautious as stretched valuations collide with tightening rate expectations and key earnings catalysts. With Nvidia on deck, momentum in the index remains fragile.
Dow Jones Finds Support at the 50 SMA Again
While all three major indices moved lower, the Dow Jones showed signs of stabilization. The index’s decline paused at the 50-day simple moving average, a level that has acted as reliable support in recent weeks. Given Waller’s dovish remarks, some traders are hoping the Dow could attempt a short-term rebound if sentiment steadies into Tuesday’s session.
U.S. Equity Markets Retreat — Key Index Moves
S&P 500 Pulls Back Nearly 1%
- The S&P 500 ended the session lower, falling 65.91 points.
- This marks a decline of approximately 0.98%, reflecting broad selling across major sectors.
- The index closed near 6,668, giving back gains from earlier in the week.
- Defensive sectors saw relative strength, while tech and consumer discretionary led the downside.
Nasdaq Declines as Tech Weakness Persists
- The Nasdaq Composite slipped about 0.9%, closing near 22,691.
- High-growth technology stocks continued to face pressure amid rising volatility and cautious earnings sentiment.
- Semiconductor and AI-related names were among the biggest laggards, dragging the broader index lower.
- Traders cited concerns over stretched valuations and upcoming key earnings releases.
Dow Jones Faces the Sharpest Drop
- The Dow Jones Industrial Average posted the largest decline of the three major benchmarks.
- The index fell roughly 1.2%, finishing around 46,570, based on two unofficial readings.
- Losses were concentrated in industrials, financials, and consumer blue chips.
- The pullback suggests investors rotated away from cyclical names amid renewed macro uncertainty.
Broad Market Signals Caution
The collective weakness across the S&P 500, Nasdaq, and Dow underlines a market losing momentum as investors reassess valuations and brace for a heavy week of data and earnings. Tech and cyclical sectors saw the sharpest pullbacks, reinforcing a sense of fragility in the near-term outlook.
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