Stocks Slide as Labor Market Weakness Spurs Rate-Cut Bets and Volatility Surge – FJElite

Volatility wreaked havoc on Wall Street, with strong evidence of a cooling labour market driving high-valued tech stocks and cryptocurrency lower, while bonds rallied on bets the Federal Reserve would cut rates.

Equities fell for the second time in three days, and 10-year yields fell the most in a month after Challenger, Grey & Christmas Inc. reported the largest October job cuts in more than 20 years. The Nasdaq 100 fell 1.9%, and the closely watched volatility index briefly reached 20.

While bets on Fed rate cuts have propelled the bull market alongside the artificial-intelligence boom, concerns about lofty valuations have emerged. Technical indicators are indicating reasons for caution, while concerns about a shrinking cohort of stocks driving gains have grown louder.

According to Fed Bank of Cleveland President Beth Hammack, inflation is a greater risk than job weakness. Her Chicago counterpart, Austan Goolsbee, told CNBC that the lack of inflation data during the shutdown makes him concerned about rate cuts. Governor Michael Barr stated that officials must continue to address inflation while ensuring a strong labour market.

The S&P 500 index fell 1.1%. Nvidia and Tesla led megacap losses. The UBS US AI Winners Index dropped approximately 3%.
The yield on 10-year Treasuries fell seven basis points to 4.09%.
Money markets now predict a more than 60% chance of a Fed cut next month. The dollar index fell 0.3%. Bitcoin fell 2.5%.