Stocks Tumble as Fed Cut Hopes Fade

U.S. stock market tumbles amid Fed cut uncertainty

Equities slid as December rate-cut odds fell to a coin flip. Tech led losses; Cisco popped on AI demand.

TL;DR:

🏦 Fed cut odds wobble; stocks slide
💻 Tech leads selloff; megacaps hit
🛰️ Cisco jumps on AI-driven beat
🌍 Global markets retreat on Fed doubts

Fed Cut Odds Wobble; Stocks Slide

The S&P 500 fell 1.7%, the Dow 1.7%, and the Nasdaq 2.3% as traders reassessed the odds of a December Federal Reserve cut. Volatility firmed and defensives outperformed while yields steadied, signaling caution into year-end positioning. The move reflects a reset in policy expectations rather than a shock to growth. Source

Tech Leads Selloff; Megacaps Hit

High-valuation tech bore the brunt, with Nvidia, Apple, and Microsoft sliding as higher-for-longer worries pressured duration trades. The Nasdaq underperformed broader indices as investors trimmed crowded AI and software exposure. Dip buyers stayed selective, prioritizing earnings visibility and cash flow over pure momentum. Source

Cisco Jumps on AI-Driven Beat

Cisco reported $1 EPS, topping estimates, and flagged $1.3 billion in AI-related orders, sending shares up about $3.25. The print highlighted resilient enterprise demand for networking tied to AI build-outs, bucking broader tech weakness. Investors rotated into cash-generative hardware plays with clearer backlog visibility. Source

Global Markets Retreat on Fed Doubts

Risk assets softened worldwide as markets cut the probability of a December Fed rate cut to roughly 50/50. In the UK, the FTSE 100 fell 0.6% after weak Q3 GDP and fallout from a Jaguar Land Rover cyberattack added pressure to cyclicals. Cross-asset tone turned defensive into the weekend, with dollar firmness weighing on commodities and EM. Source Source

U.S. Stock Market Tumbles Amid Rate Cut Uncertainty