US stocks fell sharply

Concerns about a subpar interest rate scenario and an AI stock “bubble” push the S&P 500 to its lowest level in a month.

The S&P 500 fell about 1.66% to 6,737.49, while the Nasdaq Composite dropped 2.29% to 22,870.36. The Dow Jones Industrial Average was also down 1.65% to 47,457.22. These indexes recorded their biggest declines since President Donald Trump shocked the world with his “Liberation Day” tariffs this spring.

One of the main factors driving the market down was the continued decline in technology stocks, especially those involved in the field of 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 starting to show signs of a bubble.

To make matters worse, investors are now less optimistic about the possibility of the US Federal Reserve cutting interest rates again in December. Data from CME Group shows that the chance of the Fed cutting its benchmark interest rate for the third time this year has dropped to 51.9%, compared to nearly 70% last week.

Recent comments from Fed officials have raised further doubts about the likelihood of further rate cuts. If the Fed decides to hold rates steady or not cut them, this will put pressure on stock prices, especially technology stocks and stocks with high valuations.

Investors are also concerned about a volatile bond market, with the yield on the 10-year US Treasury note rising slightly, putting downward pressure on stocks and other investments. The yield on the 10-year Treasury note, currently at 4.09%, is expected to rise slightly to 4.21% over the next 12 months, barring an inflationary surprise, which has created a wave of selling in financial markets.

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

However, some stocks still maintained their upward momentum, notably Berkshire Hathaway, the company of legendary investor Warren Buffett, when its shares increased 2.1%. This is an optimistic signal for investors looking for value investment opportunities, different from expensive technology stocks.

Cisco Systems shares also rose 4.6% after the tech company reported better-than-expected financial results.

The US stock market on November 13 clearly reflected the change in investor sentiment. From confidence in a strong interest rate cut, to concerns about a stricter monetary policy and high valuations of technology stocks, investors are gradually withdrawing and adjusting their strategies. This trading session also raised a big question about the market's ability to recover in the short term, when important economic data will be released after the US government is fully reopened, and may greatly affect the Fed's decision on interest rates.

Accordingly, investors may face many big fluctuations in the coming time. The current situation makes some investors worry about technical correction and warn of risk in valuation, especially in the context of unpredictable Fed and important economic data coming.

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