Market Dive: Tech Stocks Tumble Amid Federal Reserve's Hawkish Stance

Wall Street's major stock indexes plummet, pressured by selling in technology stocks and cautious Federal Reserve commentary on interest rate cuts. Concerns over AI stock valuations contributed to a market drop, with the Nasdaq headed for its longest losing streak since April. Expectations for a December rate cut diminished, as the economic outlook remains uncertain.

Wall Street faced another challenging day as major stock indexes fell, driven by intensified selling in technology stocks. The Dow Jones Industrial Average plummeted by 568 points, a 1.24% decline, while the S&P 500 and Nasdaq registered losses of 1.09% and 1.44%, respectively.

Federal Reserve officials' cautious comments on interest rate cuts in December further stoked investor concerns, with market expectations for a rate cut dropping to 53% from the previous week's 67%. This uncertainty comes amidst renewed anxiety over AI stock valuations, which have prompted multiple sell-offs.

The U.S. government's recent shutdown worsened economic instability, creating data gaps and raising alarms over economic health. Meanwhile, outside factors such as adjusted U.S. tariffs on Swiss goods and key corporate movements, like Merck's acquisition of Cidara Therapeutics, add layers of complexity to the market landscape.

(With inputs from agencies.)