Tech Sector Drags Markets Lower as Rate Cut Odds Diminish
U.S. equities opened the week under pressure, with the S&P 500 and Nasdaq 100 both falling more than 1% amid broad-based tech weakness. Semiconductor giants Nvidia and Advanced Micro Devices led the decline alongside Palantir and Apple, reflecting growing risk aversion ahead of critical labor market data.
The CME FedWatch Tool shows plunging expectations for a December rate cut, with probabilities collapsing to 44.9% from 93.7% a month ago. This hawkish repricing follows warnings from Kansas City Fed President Jeff Schmid that monetary easing won't solve structural labor issues. The delayed September jobs report, now scheduled for Thursday release, could further cement the Fed's higher-for-longer stance.