Dow’s big drop after a record close is fairly rare. How doubts about December rate cut are weighing on Wall Street.

Market Overview - Major U.S. equity indexes experienced significant declines, with the Dow dropping nearly 800 points (1.7%), S&P 500 falling 113.43 points (1.7%), Nasdaq Composite decreasing 536.10 points (2.3%), and Russell 2000 declining 67.81 points (2.8%) [2] Federal Reserve Influence - Market expectations for interest rate cuts by the Federal Reserve in December fell below 50% before recovering, down from nearly 63% the previous day, influenced by comments from Fed officials regarding persistent inflation and a resilient economy [3] Bond Market Reaction - The yield on the 10-year Treasury note rose by 3.2 basis points to 4.111%, indicating an inverse relationship with bond prices as they fell [4] Sector Performance - A rotation trade earlier in the week had initially supported the Dow, but a broader selloff ensued, affecting even value stocks, including those in the S&P 500 healthcare sector, which remains the top-performing sector in November with a nearly 6% gain [6] Individual Stock Performance - The Nasdaq Composite struggled, with members of the "Magnificent Seven," such as Meta Platforms and Tesla, entering correction territory (10% drop from recent highs), while Nvidia, the most valuable U.S. company, was down nearly 10% from its record finish on October 29 [7]