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Closing Bell Report, Negative Market Sentiment Triggered by AI Valuations

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U.S. markets closed sharply lower Thursday, hammered by renewed pressure on AI stocks amid lofty valuations and uneven earnings. The Dow plunged nearly 400 points, while the Nasdaq’s 1.9% drop marked its worst week since April, driven by declines in Nvidia, AMD, and Palantir. October’s 153,000+ job cuts—the highest since 2003—stoked labor market fears, amplified by the ongoing government shutdown curbing data flows. Supreme Court skepticism on Trump tariffs added volatility risks.

US Majors

IndexCloseChange% Change
Dow Jones46,912.30-398.70-0.84%
S&P 5006,720.32-76.00-1.12%
Nasdaq Composite23,053.99-447.00-1.90%

Global Snapshot

Europe mixed: FTSE 100 flat post-BoE hold at 4% (5-4 vote signals gradual easing if disinflation holds); DAX/CAC down ~1% on soft retail sales. Nikkei rebounded modestly in Asia amid U.S. cues.

Commodities & Crypto

  • Oil (WTI): ~$70/bbl, stable.
  • Gold: Below $4,000/oz, off 5%+ from Oct record; retail buying plateaus.
  • Bitcoin: Dipped below $100k on risk-off flows.

Bonds & FX

  • 10Y Treasury: Yields ~4.3%, down 5bps on layoff data boosting Fed cut odds (90%+ for Dec).
  • GBP/USD: Steady post-BoE; USD firmed vs. majors.

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