Market Overview - The US stock indices closed lower, with the Dow Jones down 0.84% at 45752.26 points, the S&P 500 down 1.56% at 6538.76 points, and the Nasdaq down nearly 500 points, a decline of 2.15% to 22078.05 points [4][3][26] - Major technology stocks also experienced declines, with the "Big Seven" tech companies index dropping 1.74% [10][12] Individual Stock Performance - Cisco fell 3.76%, Boeing dropped 3.37%, and Nvidia decreased by 3.15%, leading the declines among Dow components [7][8] - Other notable declines included Amazon down 2.49%, Tesla down 2.21%, and Microsoft down 1.60% [12][13] Chinese Stocks - Chinese stocks also saw a widespread decline, with the Nasdaq Golden Dragon China Index down 3.26% and the Wande Chinese Technology Leaders Index down 2.72% [15][14] - Individual stocks such as Canadian Solar fell nearly 19%, while Xinyi Technology dropped over 14% [17] Federal Reserve Insights - Following the release of new data, traders increased their bets on a potential interest rate cut by the Federal Reserve, although a rate cut in December is still not expected [18][19] - The US non-farm payrolls increased by 119,000 in September, significantly above the market expectation of 50,000, while the unemployment rate rose to 4.4%, the highest since October 2021 [19][20] Financial Stability Risks - Federal Reserve officials highlighted three major financial stability risks: high asset valuations, the expansion and complexity of private credit markets, and hedge fund activities potentially disrupting the Treasury market [22][23] - Lisa Cook, Chair of the Financial Stability Committee, noted that asset valuations across multiple markets are at high levels compared to historical benchmarks, increasing the likelihood of significant price declines [24][25]
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