FX.co ★ US Stocks Extend Losses

On Thursday, US stocks continued to decline, particularly impacting companies with AI exposure, as market participants increasingly anticipated a rate hold decision in the Federal Reserve's upcoming meeting. The S&P 500 and Nasdaq 100 recorded losses of 1.3% and 1.8%, respectively, while the Dow experienced a 1% fall. Although optimism about the resolution of the US government shutdown bolstered defensive sectors following the Dow's record peak the previous day, indices suffered due to significant downturns in major tech firms. There's growing skepticism regarding the justified valuations of AI enterprises and hardware manufacturers. Consequently, companies such as Nvidia, Broadcom, Oracle, and Palantir saw declines ranging from 5.5% to 4%, with Tesla witnessing a 7% drop. Additionally, Disney's shares plummeted over 8% after delivering mixed earnings results. While upcoming official economic data could corroborate the negative signals observed in private surveys since October, the concerns over persistent inflation and the Federal Reserve's hawkish rhetoric have led to increased speculation that the Fed may choose to maintain current interest rates next month.