Tech Stocks Continue Selling Amidst Doubts Over Pending US Economic Data Post-Government Shutdown
On this Friday morning, the three major indices on Wall Street—Dow Jones, S&P 500, and Nasdaq Composite—are experiencing declines. The sell-off in tech stocks persists, fueled by uncertainties surrounding the release of pending US economic data following the end of the federal government shutdown.
Key Market Indices Performance:
- Dow Jones Industrial Average: Decreased by 0.83% to 47,061.76 points.
- S&P 500: Dropped by 0.28% to 6,718.73 points.
- Nasdaq Composite: Fell by 0.15% to 22,836.58 points.
Economic Data Release Uncertainty and Fed’s Next Steps
Kevin Hassett, the White House economic advisor, stated yesterday that the government will release an anticipated employment report for October. However, it won’t include unemployment rate figures. Hassett also refrained from mentioning any inflation data.
These figures are crucial for predicting the Federal Reserve’s subsequent actions, as it has already lowered its interest rate in the past two meetings. Recently, Fed officials have expressed doubts about repeating these measures next month.
Concerns Over High Tech Stock Valuations
Investors are concerned about the high valuations of tech stocks related to artificial intelligence (AI). Recent episodes of sell-offs have targeted these stocks, with the Nasdaq heading towards its fifth consecutive session of declines and a potential second week of losses.
Key Questions and Answers
- Q: Who is Kevin Hassett? A: Kevin Hassett serves as the Chairman of the Council of Economic Advisers, a White House agency responsible for providing the President and Congress with objective analysis on domestic and international economic issues.
- Q: Why is the October employment report significant? A: The report provides insights into the job market’s health, influencing investors’ expectations about the Federal Reserve’s monetary policy adjustments.
- Q: What are the concerns regarding tech stocks? A: Investors worry about overvalued tech stocks, particularly those linked to artificial intelligence, amidst recent sell-offs.
