Overview
- Skepticism over rich AI and tech valuations drove a risk-off session that pushed the S&P 500 and Nasdaq below their 50-day moving averages for the first time since late April, with losses accelerating into the close.
- Futures pricing now implies roughly a 40%–45% chance of a Federal Reserve rate cut in December, a sharp pullback from about 90% a month earlier, according to CME FedWatch.
- Bitcoin traded just under $92,000 after a drop of more than 25% from October’s record, erasing its year-to-date gains and pressuring crypto-exposed equities.
- Asia-Pacific and European benchmarks tracked Wall Street lower as traders reduced exposure ahead of Nvidia’s earnings on Wednesday and the postponed September nonfarm payrolls on Thursday.
- Market technicians flagged weakening breadth and fragile support levels, and analysts cited heavy AI capex and uncertain profitability as reasons the selloff could deepen if this week’s catalysts disappoint.