SummaryCompaniesIndexes down: Dow 0.30%, S&P 500 0.69%, Nasdaq 1.21%Tesla shareholders approve $1 trillion CEO pay packageExpedia jumps after annual revenue growth forecast hikeTake-Two slumps after delaying GTA VI launchNov 7 (Reuters) – Wall Street’s main indexes extended losses to a second session on Friday, and were set for weekly declines, as concerns about the economy and sky-high valuations in the technology sector soured sentiment.The tech-heavy Nasdaq (.IXIC), opens new tab declined almost 2% on Thursday after Wall Street executives earlier this week warned a market correction could be on the way.
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The S&P 500 and the Dow are both set for their steepest weekly loss in four, while the Nasdaq is poised for its worst weekly performance since March.”There is a continuation of the concern of a possible pullback… it’s traditional early November weakness triggered by elevated valuations and the running out of catalysts to support or propel the market,” said Sam Stovall, chief investment strategist at CFRA Research.Optimism around artificial intelligence has pushed markets to all-time highs this year, but concerns over monetization of the technology and circular spending within the industry has dampened enthusiasm for U.S. stocks in recent days.Tech stocks such as Nvidia (NVDA.O), opens new tab and Broadcom (AVGO.O), opens new tab fell 2.8% and 2.2%, respectively. The information technology sector (.SPLRCT), opens new tab and the broader semiconductor index (.SOX), opens new tab were set for their biggest weekly declines in seven months.At 10:01 a.m. ET, the Dow Jones Industrial Average (.DJI), opens new tab fell 138.50 points, or 0.30%, to 46,773.80, the S&P 500 (.SPX), opens new tab lost 46.63 points, or 0.69%, to 6,673.69 and the Nasdaq Composite (.IXIC), opens new tab lost 278.31 points, or 1.21%, to 22,775.68.The CBOE Volatility Index (.VIX), opens new tab, Wall Street’s fear gauge, hit its highest level in more than two weeks.Tesla (TSLA.O), opens new tab shareholders approved the largest corporate pay package in history for CEO Elon Musk. Shares fell 3.3% tracking broader market sentiment and weighed down the consumer discretionary (.SPLRCD), opens new tab sector.On the earnings front, data compiled by LSEG until Thursday showed 83% of 424 companies in the S&P 500 that have reported results so far have beaten Wall Street expectations, the highest rate of better-than-expected results since the second quarter of 2021.Expedia (EXPE.O), opens new tab jumped 16% to top the S&P 500 after the online travel platform boosted its forecast for full-year revenue growth and posted third-quarter profit above expectations.
ECONOMIC CONCERNS LINGER
The longest U.S. government shutdown in history has led to an information gap, with Federal Reserve policymakers divided on the future of monetary policy as private data paints a mixed picture of the economy.The economic impact of the shutdown was far worse than expected, White House economic advisor Kevin Hassett said in an interview with Fox Business Network.Meanwhile, the preliminary reading of the University of Michigan’s Consumer Sentiment Index was 50.3 this month, compared with estimates of 53.2 according to economists polled by Reuters.”The question is, will it exacerbate an economic slowdown within the U.S.? There is a lot of uncertainty… it’s not just the Fed that is flying blind, it is the American consumer and investor as well,” said Stovall.Among others, Block (XYZ.N), opens new tab slumped 10.5% after missing third-quarter profit expectations, and Take-Two Interactive (TTWO.O), opens new tab declined 6.6% after delaying its popular video game GTA VI to November 2026.Declining issues outnumbered advancers by a 1.29-to-1 ratio on the NYSE and by a 1.99-to-1 ratio on the Nasdaq.The S&P 500 posted 8 new 52-week highs and 10 new lows while the Nasdaq Composite recorded 18 new highs and 211 new lows.
Reporting by Twesha Dikshit and Purvi Agarwal in Bengaluru; Editing by Krishna Chandra Eluri
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