“`html
The S&P 500 Index, Dow Jones Industrials, and Nasdaq 100 fell to fresh two-week lows today, with declines of -0.79%, -0.46%, and -1.13%, respectively. This follows weak performance from megacap technology and semiconductor stocks. Economic concerns also mount as outplacement firm Challenger, Gray & Christmas reported the highest job cuts in October in over 20 years.
Additionally, comments from Fed Vice Chair Philip Jefferson indicated a cautious approach to interest rate cuts. The markets are currently pricing in a 66% chance of a -25 basis point rate cut at the upcoming FOMC meeting on December 9-10. Meanwhile, the ongoing US government shutdown, which is now the longest in history, continues to exert negative pressure on market sentiment.
Notably, Chinese trade data further complicated the outlook, with October exports declining by -1.1% year-over-year, against an expectation of +2.9% growth, marking the largest drop in eight months. Meanwhile, 136 S&P 500 companies reporting this week have an 81% earnings beat rate, although year-over-year profit growth is projected at a modest +7.2%, the lowest increase in two years.
“`
