Gotrade News - Wall Street closed sharply lower as inflation fears intensified and investors braced for Nvidia earnings. The Dow fell 1.07%, S&P 500 dropped 1.24%, and Nasdaq slid 1.54%.
An oil price surge stoked fresh inflation concerns while 30-year Treasury yields climbed above 5.1%. Disappointment over the Trump-Xi summit added pressure across cyclical and technology sectors.
Key Takeaways
- Dow dropped 537.29 points to 49,526.17 as inflation worries dominated trading sentiment.
- Semiconductor index fell 4%, with NVIDIA (NVDA) down 4.4% ahead of Wednesday earnings.
- Oil prices jumped sharply, with WTI up 4.2% to $105.42, lifting energy stocks 2.3%.
Inflation Fears Drive Broad Selloff
According to Kumparan, the Dow Jones Industrial Average fell 537.29 points to 49,526.17. The S&P 500 dropped 92.74 points to 7,408.50 in a broad-based decline.
The Nasdaq Composite slid 410.08 points to 26,225.15, leading major indexes lower. SPDR S&P 500 ETF (SPY) tracked the benchmark index lower in heavy trading volume.
Kenny Polcari of Slatestone Wealth warned that markets had ignored critical bond market signals. He said investors became overly consumed by AI trading momentum, leaving valuations exposed to repricing.
Energy stocks bucked the selloff, rising 2.3% as crude oil prices surged on supply concerns. However, the gain failed to offset weakness across technology, financials, and consumer discretionary sectors.
Per Katadata, US 30-year Treasury yields climbed above 5.1% on inflation worries. Rising long-term yields typically pressure equity valuations, particularly in growth-heavy sectors.
The Trump-Xi meeting disappointed investors expecting substantive trade breakthroughs between Washington and Beijing. China agreed to purchase 200 Boeing aircraft, a result markets viewed as a marginal positive.
Boeing shares fell 3.8% despite the order, reflecting broader skepticism about the summit outcomes. Adam Crisafulli of Vital Knowledge said the sector had risen excessively, creating vulnerability to profit-taking.
Nvidia Earnings Take Center Stage
The semiconductor index dropped 4%, with NVIDIA falling 4.4% ahead of its Wednesday earnings report. AMD declined 5.7% and Intel slid 6.2% in the broad chip selloff.
As reported by KabarBursa, US futures traded slightly lower Monday morning. Dow futures fell 100 points as caution dominated ahead of pivotal corporate earnings.
Mark Newton of Fundstrat noted that volatility is re-emerging as global long-term yields rise. He warned that bond market dislocations historically precede broader risk asset repricing across regions.
The Nasdaq-100 fell 1.5% on Friday, marking its worst session since March 27. The decline underscored growing fragility in the AI-driven rally that powered 2026 gains.
Bucking the trend, Microsoft (MSFT) advanced 3.1% on the session. The gain followed Bill Ackman's disclosure of a significant new position in the software giant.
WTI crude climbed 1.8% to $107.26 while Brent rose 1.1% to $110.47 in extended trading. The energy strength reinforced inflation concerns weighing on rate-cut expectations into December.
Jerome Powell concluded his final day as Fed Chair, with Kevin Warsh assuming leadership. Markets currently price the December rate hike probability at roughly 40%, complicating the equity outlook.
