Wall Street's Rally Pauses Amid Rate Cut Uncertainties

Wall Street's rally stalled as investors reassessed stock valuations with no new catalysts. Concerns arose over potential interest rate cuts by the Federal Reserve. Tech stocks faced mild declines, though some analysts maintained confidence in market resilience, supported by geopolitical developments and positive corporate earnings.

The fervent rally on Wall Street took a breather on Thursday as investors grappled with justifying stock valuations amid a dearth of fresh stimuli. The remarkable bull run has defied concerns of a bubble, yet analysts caution a quick reversal could occur if the Federal Reserve falls short in slashing interest rates.

Minutes from the Fed's September meeting revealed ongoing inflation worries amongst its policymakers. Notably, New York Fed President John Williams voiced support for further rate cuts. Market participants are on edge, awaiting speeches from Fed Board Governor Michael Barr and San Francisco Fed President Mary Daly for more insights.

Both Nasdaq and the S&P 500 experienced declines with tech stocks struggling. However, optimism persists with reports of easing geopolitical tensions and strong corporate earnings from firms like Delta Air Lines and PepsiCo. Yet, concerns linger, evidenced by investigations into Tesla's self-driving systems and mixed performances across various sectors.

(With inputs from agencies.)