Stocks Slide on Bleak US Job News and Weakness in Chipmakers

Group 1: Legal and Regulatory Developments - The US Supreme Court is questioning the legality of President Trump's reciprocal tariffs, with Chief Justice Roberts emphasizing that tariff imposition is a core power of Congress [1] - Lower courts have ruled Trump's tariffs illegal, based on a questionable claim of emergency authority under the 1977 International Emergency Economic Powers Act [1] - If the Supreme Court upholds these rulings, the US government may need to refund over $80 billion in tariffs already collected [1] Group 2: Labor Market and Economic Indicators - US job cuts surged by 175.3% year-over-year in October, totaling 153,074, marking the largest increase in seven months and the highest for an October in 22 years [3] - Year-to-date job cuts have exceeded 1 million, the highest since the pandemic, with employers announcing the fewest hiring plans since 2011 [3] - The ongoing US government shutdown is affecting market sentiment and delaying government reports, which could further impact the economy [8][10] Group 3: Stock Market Performance - US stock indexes are retreating, with the S&P 500 and Nasdaq 100 reaching two-week lows due to evidence of a cooling labor market and weakness in semiconductor stocks [5][6] - The S&P 500 Index is down 0.97%, the Dow Jones is down 0.76%, and the Nasdaq 100 is down 1.61% [6] - Despite the downturn, 81% of S&P 500 companies reporting Q3 earnings have beaten expectations, indicating strong corporate performance [4][7] Group 4: Interest Rates and Bond Market - The markets are pricing in a 69% chance of a 25 basis point rate cut at the next FOMC meeting [2] - The 10-year T-note yield has decreased by 7 basis points to 4.09%, influenced by weak labor data and expectations of continued interest rate cuts [4][9] - The ongoing government shutdown is providing underlying support for T-note prices, as it may lead to additional job losses and reduced consumer spending [10] Group 5: Company-Specific Developments - Semiconductor stocks are underperforming, with AMD down over 7% and Qualcomm down over 4% [14] - Elf Beauty's stock has dropped more than 32% after forecasting 2026 adjusted EPS significantly below consensus [15] - Datadog's stock has risen over 21% after raising its full-year adjusted EPS forecast above consensus [17]