Nasdaq leads wild swings on Wall Street as tech sell-off continues

Market Overview - US stocks experienced their largest single-day reversal since April, with the Nasdaq swinging from a high of over 2.5% to close more than 2% in the red, influenced by a mixed jobs report that led investors to reduce the likelihood of a December Fed rate cut [2][23][29] - The Dow Jones fell 0.8%, with the S&P 500 down about 1.6%, while Nvidia closed down more than 3% after initially bouncing 5% at the open [24][29] Economic Indicators - The September non-farm payrolls report indicated the US economy added 119,000 jobs, a significant increase from the 4,000 jobs lost in August, but the unemployment rate rose to 4.4%, the highest since October 2021 [27][28] - Traders are now pricing in only a 27% chance of a rate cut in December, as Cleveland Fed President emphasized the need for a somewhat restrictive monetary policy to control inflation [29][30] Technology Sector Insights - Nvidia's strong performance has raised questions about the sustainability of revenue growth from hyperscalers and the overall tech environment, with concerns about capital expenditure declines affecting future revenue expectations [6][7][8] - The tech sector is facing significant selling pressure, with major companies like Advanced Micro and Oracle experiencing declines of nearly 8% and 7%, respectively [24][25] Geopolitical Factors - A US peace plan for Ukraine reportedly requires significant concessions from Kyiv, including territorial compromises and a withdrawal from NATO aspirations, which could impact market sentiment [3][57] - The ongoing geopolitical risks, including trade tensions and inflation concerns, are contributing to market volatility and investor uncertainty [36][50] Market Sentiment and Valuation Concerns - There is a growing debate about whether the market is overvalued, with distinctions being made between high-quality companies that are overvalued and those that lack a proven path to profitability [10][11][13] - The VIX, a measure of market volatility, has increased significantly, indicating heightened investor fear and uncertainty [42][52]