US Stock Market: Friday was like a thriller for the US stock market. Initially, everything looked positive. Strong results from giants like Nvidia and Walmart propelled the market upward, and the Dow Jones rose by 700 points at one point. Investors were filled with smiles, but the joy didn’t last long.
Nvidia and Walmart offered confidence for a strong start, but
US Stock Market: The market mood was positive in morning trading. Strong sales of Nvidia’s AI chips and positive results from Walmart boosted investor confidence. Both the Nasdaq and S&P 500 opened strongly, suggesting a strong day for the market. But then the Jobs Report came out, making it clear to investors that the picture ahead wasn’t as simple.
Jobs Report dashes Federal Reserve expectations
US Stock Market: The September Jobs Report, released late due to the government shutdown, changed investor sentiment. The report showed that 119,000 new jobs were added in September, and the unemployment rate rose slightly to 4.4%. While this figure was better than expected, a 33,000 cut in July and August figures cast a negative shadow over the sentiment.
Meanwhile, expectations that the Federal Reserve will cut interest rates in December have also diminished significantly. James Knightley, chief economist at ING Bank, said that the Fed’s recent dovish stance and the lack of new data suggest the next rate cut could be delayed until early 2026.
Market Conditions at the End of the Day: From a Sharp Rise to a Deep Fall
As trading neared the end, the market mood had completely changed.
The Dow Jones closed down 386 points at 45,752.
The Nasdaq fell a significant 486 points to 22,078.
The S&P 500 also slipped 103 points to close at 6,538.
The 10-year Treasury Yield also fell slightly to 4.098%.
This fluctuation clearly demonstrates the profound impact economic data has on the market.
The AI bubble buzz is back, but experts are saying no
There’s a lot of discussion surrounding the AI sector, wondering if it’s developing into a bubble. However, many experts disagree. According to Nancy Tengler, CEO of Laffer Tengler Investments, “It’s easy to talk about an AI bubble, but it’s wrong. Ultimately, it’s all about earnings, and AI companies’ earnings are strong.” This means the AI sector is currently demonstrating real performance, not hype.
Frequently Asked Questions
Q1. Why did the Dow fall so much?
Due to the Jobs Report and the possibility of a delayed rate cut by the Fed.
Q2. Why did the morning rally end?
Because the Jobs Report data changed market expectations.
Q3. Could there be a rate cut in December?
The probability is around 40%, meaning low expectations.
Q4. Is the AI sector a bubble?
Experts say no, earnings are strong.
Disclaimer: This article is for informational purposes only. The information provided here does not constitute investment advice. Please consult your financial advisor before making any financial investments.
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