Wall Street Slumps Amid Manufacturing Dip and Tech Troubles

Wall Street's main indexes fell due to declines in technology and chip stocks, as well as weak manufacturing data. Concerns were heightened by the Federal Reserve's stance on rate cuts. Major names like Apple, Amazon, and Tesla saw declines, while Eli Lilly posted gains due to positive drug trial results.

Wall Street's main indexes reversed course and slumped on Thursday, influenced by a drop in manufacturing activity to an eight-month low, sparking newfound fears about the U.S. economy's robustness. Tech and chip stocks notably dragged down markets, with Nvidia and Arm Holdings creating significant impact.

Amid the downturn, the blue-chip Dow suffered with Caterpillar and Boeing pulling it lower. Small-caps were also hit, with the Russell 2000 slumping over 3%. The only positive outlier was Meta Platforms, which saw a 6.4% jump after strong financial results.

Investors are closely watching for signals that mega-cap tech companies can maintain gains driven by AI advancements, amid concerns about Federal Reserve policies and labor market weakness highlighted by rising jobless claims.

(With inputs from agencies.)