US stock indexes fall, Nasdaq 100 on track for worst week since April
The sell-off in U.S. stocks continued in trading on Friday, November 7. Major U.S. stock indices fell amid continued weakness in the technology sector, CNBC reports. S&P 500 lost 1%, Nasdaq Composite collapsed by 1.7%, Dow Jones Industrial Average fell by 0.7%. Nasdaq 100 index went into negative by 1.6% and is close to recording the largest weekly decline since early April.
Nvidia shares collapsed by 4.3% and may end the week with a drop of about 10%. Quotes of Oracle fell by 4.5%. Palantir, Broadcom, AMD and other AI stocks also collapsed.
Leaders of the artificial intelligence sector are losing momentum, CNBC points out. On Thursday, Nvidia, AMD, Tesla and Microsoft fell significantly in price, which put pressure on the whole market. The fall was exacerbated by the data published on November 6 on the growth of layoffs - in October, the figure reached the maximum for more than 20 years. And on Friday, the University of Michigan reported that consumer sentiment is approaching the lowest values in the history of observations, including due to fears of a government shutdown.
What are the analysts saying?
Traders are reflecting on the signs of weakness that have appeared after several months of growth in stocks, but the market as a whole looks ready for a further rise, said Tony Pasquariello of Goldman Sachs, his opinion quotes Bloomberg. According to the analyst, market participants are asking a lot of questions and actively arguing on key topics, but such tension can not be called harmful. "I do not argue that the risk/reward ratio is now particularly attractive or that this is an ideal time to build positions. However, looking ahead, I would say that the balance of risks is still tilted in favor of the bulls," Pasquariello said.
"There's still hope for a New Year's Eve rally with the end of the government shutdown and the clarity on duties," Navellier & Associates founder Louis Navellier told CNBC, referring to progress in the Senate budget negotiations as well as the U.S. Supreme Court hearings that have begun, which could overturn Donald Trump's trade restrictions. "Nvidia's extremely important report is two weeks away and its strong results could be a catalyst for AI betting," Navellier believes. - If this is followed by a December Fed rate cut, we may still end the year on the upside." He called corrections on the back of such a significant rise a normal and expected phenomenon, not a cause for panic.
This article was AI-translated and verified by a human editor
