Fed Uncertainty Triggers Broad Market Slide As Shutdown Blocks Key Data

Benzinga

Markets slid globally as the Fed operated without key economic data, pushing traders to cut risk. AI-linked names, meme stocks, and high-momentum plays saw heavy losses, while Bitcoin fell further below $100,000. Rate-cut odds for December dropped to about 50%, adding to volatility.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02The Federal Reserve is operating without key economic data due to the shutdown,

00:07creating uncertainty that is unsettling investors, according to Bloomberg.

00:11Stocks sold off sharply on Thursday, with the S&P 500 down 1.7 percent and the NASDAQ 100 down 2 percent,

00:20and the downturn extended into Friday across Europe and Asia.

00:23Bitcoin fell further below $100,000, widening its decline from its October peak.

00:30High momentum and retail favorite stocks saw the steepest losses after traders cut exposure

00:34when the probability of a December rate reduction dropped to about 50 percent.

00:39AI-linked names and meme stock baskets tumbled,

00:42and heavily shorted stocks also logged their worst day since April.

00:46Fed officials gave mixed signals on future rate moves as they waited for the backlog of delayed economic reports.

00:51For all things money, visit Benzinga.com.

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