Overview
- U.S. stocks logged their worst day in about a month, with the Dow down roughly 1.7% (about 800 points), the S&P 500 off around 1.7% and the Nasdaq lower by about 2.3%.
- Trader-implied odds of a 25-basis-point cut in December fell to roughly 49%–52%, following cautious commentary from officials including Alberto Musalem, Beth Hammack, Neel Kashkari and Susan Collins.
- Treasury prices declined as the 10-year yield edged to about 4.11%, highlighting reduced confidence in near-term easing.
- AI leaders led the pullback, with Nvidia down about 3.6% as investors reassessed stretched valuations, a slide linked in part to SoftBank’s sale of its Nvidia stake.
- The 43-day U.S. shutdown ended, yet key data gaps persist for jobs and inflation, and the selloff spread to Asia and Europe on Friday.