US stocks fell sharply.

Concerns about a potential drop in interest rates and a potential AI stock bubble pushed the S&P 500 to its lowest level this month.

The S&P 500 fell approximately 1.66% to 6,737.49 points, while the Nasdaq Composite dropped 2.29% to 22,870.36 points. The Dow Jones Industrial Average also suffered a decline, losing 1.65% to 47,457.22 points. These indices recorded their sharpest declines since President Donald Trump shocked the world with his "Liberation Day" tariffs this spring.

One of the main factors contributing to the market downturn was the continued decline in technology stocks, particularly those involved in artificial intelligence (AI). Stocks such as Nvidia, Super Micro Computer, Palantir Technologies, and Broadcom all fell sharply, with Nvidia being the hardest hit, losing 3.6%. Investors are concerned that the prices of these stocks have risen too high and are beginning to show signs of a potential bubble.

The situation worsened when investors began to view a further interest rate cut by the Federal Reserve (Fed) in December as less likely to happen. Data from CME Group showed that the chances of the Fed cutting the benchmark interest rate for the third time this year had fallen to just 51.9%, compared to nearly 70% last week.

Recent statements from Fed officials have further fueled doubts about the possibility of further interest rate cuts. If the Fed decides to keep interest rates stable or not cut them at all, this would put pressure on stock prices, especially technology stocks and high-valued stocks.

Investors are also concerned about a volatile bond market, as the yield on 10-year US Treasury bonds has risen slightly, putting downward pressure on stocks and other investments. The fact that the 10-year Treasury yield is currently at 4.09%, and is projected to rise slightly to 4.21% within the next 12 months, barring any inflationary surprises, has triggered a wave of selling in financial markets.

Meanwhile, stocks outside the AI sector also fell sharply, with one of the biggest shocks coming from shares of Walt Disney, the world's largest entertainment company, which dropped 7.7%. Although Walt Disney reported better-than-expected profits, declining revenue raised concerns about the entertainment industry's growth prospects.

However, some stocks maintained their upward momentum, most notably Berkshire Hathaway, the company of legendary investor Warren Buffett, whose shares rose 2.1%. This is an optimistic sign for investors seeking value investment opportunities, distinct from expensive technology stocks.

Cisco Systems' stock also rose 4.6% after the technology company announced better-than-expected financial results.

The US stock market on November 13th clearly reflected a shift in investor sentiment. From belief in a sharp interest rate cut to concerns about tighter monetary policy and overvalued technology stocks, investors are gradually withdrawing and adjusting their strategies. This trading session also raises a major question about the market's short-term recovery potential, as key economic data will be released after the US government fully reopens, and could significantly impact the Fed's interest rate decision.

Accordingly, investors may face significant volatility in the near future. The current situation is causing some investors to worry about technical corrections and warning of valuation risks, especially in the context of the unpredictable Fed and upcoming key economic data.

Source: https://thoibaonganhang.vn/chung-khoan-my-sut-giam-manh-173538.html