Tech Stocks Lead Market Drop As Investors Trim Rate Cut Bets

Benzinga

U.S. stocks tumbled as investors reassessed the likelihood of a December Fed rate cut and awaited delayed government data. High-growth tech names led the decline, with Nvidia, Tesla, Oracle, and CoreWeave sliding sharply. Analysts say markets became overly confident about rate cuts and now await fresh signals from upcoming economic releases.

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

00:02U.S. stocks fell Thursday as investors braced for a wave of delayed government data and

00:07pulled back on expectations for a December rate cut after the shutdown ended.

00:11The S&P 500 and Dow each fell 1.7 percent, and the Nasdaq dropped 2.3 percent, marking

00:18their steepest declines since October 10th, according to The Wall Street Journal.

00:22Tech stocks led losses as CoreWeave slid 8.3 percent, NVIDIA fell 3.6 percent, Oracle

00:29dropped 4.1 percent, and Tesla declined 6.6 percent.

00:34Investors remain optimistic about AI-driven tech, but are rotating out of high-priced growth

00:39names into cheaper stocks and trimming rate-cut expectations.

00:43PGIM Quantitative Solutions' Jeff Young said markets grew too confident about rate cuts

00:48after the Fed's September forecast, which hit a divide between officials worried about labor

00:52weakness and those focused on inflation above target.

00:56He said upcoming data should clear-

00:57For all things money, visit Benzinga.com.

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