Why was the stock market down today morning? 5 key points you need to know

US stock market dipped early morning trade on Monday as Wall Street retreated from record high. During the initial trading, the Dow Jones Industrial Average was down 0.5 percent at 46,106.13. The broad-based S&P 500 slipped 0.1 percent to 6,655.80, while the tech-rich Nasdaq Composite Index was unchanged at 22,630.79. Major indices finished last week at records after the Federal Reserve announced its first interest rate cut of 2025.

Stock markets seemed to be weighed the effect of President Donald Trump's latest immigration policy change on tech giants. Trump on Friday ordered a $100,000 fee on new H-1B skilled worker visas, widely used by tech companies whose hefty artificial intelligence investments have helped to fuel a stock market boom.

Analysts cited the immigration change as a factor in the stock market's early weakness Monday, while also noting that late September is traditionally a tepid period for equities.


Stock indices pulled back at the start of trading in New York after setting fresh records yet again on Friday following the Fed's resumption of interest rate cuts.

The stock market is "likely experiencing a profit-taking breather", Briefing.com analyst Patrick O'Hare said ahead of the opening bell, noting that the S&P 500 index had gained 3.2 percent in September and the Nasdaq Composite 5.5 percent in a streak of record-setting sessions.

But investors only briefly needed to catch their breath, with stocks climbing into positive territory in morning trading as the S&P 500 and Nasdaq Composite set fresh all-time highs.

The dollar fell against major rivals as the US interest rate cut weighed on the greenback, while the price of gold hit a fresh high. Crude oil prices fell around one percent as traders focused on concerns that production will outstrip demand. In European trading, London edged out a gain, but Frankfurt and Paris ended the day lower.

Shares in Amazon and Microsoft, two major users of H-1B visas, were lower on Monday. "We believe that the tech giants will be able to afford the visas, and this selloff in tech shares will be temporary, in the same way that tariff concerns weighed on stocks before dying down," said Kathleen Brooks, research director at XTB trading platform.

Shares in Porsche fell eight percent following news that it will dramatically slow its shift to electric vehicles amid weak demand. That prompted parent company Volkswagen to warn of a multibillion-euro hit and saw its shares close nearly seven percent lower.

FAQs

Q1. What are key indexes of US Stock Market?
A1. Key indexes of US Stock Market are Dow Jones, S&P 500, Nasdaq.

Q2. How are Amazon, Microsoft shares performing?
A2. Shares in Amazon and Microsoft, two major users of H-1B visas, were lower on Monday.