Overview
- U.S. stocks logged a sharp one-day drop Thursday, with the S&P 500 down 1.7%, the Dow off 1.7% (−797 points), and the Nasdaq lower by 2.3% as AI heavyweights led declines.
- Futures pointed lower Friday after hawkish Fed signals cut CME FedWatch odds of a December 25‑bp reduction to roughly 50%, with officials stressing caution and some undecided on the next move.
- The White House said October CPI and portions of the jobs report may never be released after the shutdown, impairing key inputs for policymakers and leaving markets with less reliable guidance.
- Risk aversion broadened: the VIX jumped more than 20%, Bitcoin fell about 6% below $100,000 to roughly $97,000, and major European and Asian indexes slipped alongside London’s FTSE 100.
- Semiconductor equipment pressure intensified as Applied Materials flagged weaker China spending tied to tighter U.S. export controls, and its shares fell in premarket trading.