Why are stock markets down today? Key reasons as Nasdaq, S&P 500, Dow fall

U.S. Stock Market indexes are off to a lower start on Wall Street and on track for their first weekly loss in the last four. The S&P 500 fell 0.5 per cent in the early going Friday. The Dow Jones Industrial Average fell 174 points, or 0.4 per cent, and the Nasdaq composite fell 0.8 per cent. The CBOE Volatility Index, Wall Street's fear gauge, hit its highest level in more than two weeks.

In other dealings early Friday, US benchmark crude oil gained 66 cents to USD 60.09 per barrel. Brent crude, the international standard, added 65 cents to USD 64.03 per barrel. The US dollar rose to 153.48 Japanese yen from 153.06 yen late Thursday. The euro fell to USD 1.1537 from USD 1.1546.

Why are Nasdaq, S&P 500, Dow Jones Fall?

Markets are reacting to the latest quarterly reports from US companies. Payments company Block, which operates the Square and Cash App businesses, sank after turning in results that fell short of forecasts. Exercise equipment maker Peloton jumped after its results beat estimates. Treasury yields moved higher in the bond market.

There is a continuation of the concern of a possible pullback... it's traditional early November weakness triggered by elevated valuations and the running out of catalysts to support or propel the market, said Sam Stovall, chief investment strategist at CFRA Research.

Optimism around artificial intelligence has pushed markets to all-time highs this year, but concerns over monetization of the technology and circular spending within the industry has dampened enthusiasm for U.S. stocks in recent days.

Tech stocks such as Nvidia and Broadcom fell 2.8 per cent and 2.2 per cent, respectively. The information technology sector and the broader semiconductor index were set for their biggest weekly declines in seven months.

Tesla shareholders approved the largest corporate pay package in history for CEO Elon Musk. Shares fell 3.3% tracking broader market sentiment and weighed down the consumer discretionary sector.

Airlines are feeling the impact of the shutdown as airports grapple with critical staffing problems. The Federal Aviation Administration will reduce air traffic by 10 per cent starting Friday across 40 “high-volume” markets. American Airlines fell 2 per cent, Delta Air Lines fell 1.2 per cent and United Airlines fell 1 per cent.

FAQs

Q1. What are top three indexes?
A1. Top three indexes of U.S. Stock Market are Nasdaq, S&P 500, Dow Jones.

Q2. How have tech stocks performed?
A2. Tech stocks such as Nvidia and Broadcom fell 2.8 per cent and 2.2 per cent, respectively. The information technology sector and the broader semiconductor index were set for their biggest weekly declines in seven months.