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Nikkei Slides Below 50,000 as Fed Caution on Cuts Hits Tech Shares

Fed Vice Chair Jefferson’s signal that policy is near neutral tempered hopes for additional easing.

Overview

  • The Dow Jones Industrial Average fell 557.24 points to 46,590.24, its third straight decline.
  • During the session, the Dow’s loss exceeded 700 points at one point before paring some of the drop.
  • In Tokyo’s morning trade, the Nikkei dropped more than 1,200 points at one stage, briefly broke below 50,000, and was at 49,278.14 at 10:00, while TOPIX fell 50.78 to 3,296.75.
  • U.S. market weakness was tied to waning expectations for further Federal Reserve rate cuts following Jefferson’s remarks.
  • Selling was concentrated in semiconductor and other technology shares as investors trimmed positions ahead of Nvidia’s Nov. 19 earnings.