"US equity markets lost ground last week, breaking a three-week winning streak. Technology and growth-focused stocks led the declines as investors reassessed high valuations and questioned the pace of spending in artificial intelligence (AI). The Nasdaq Composite posted the largest drop among major indexes, while growth shares underperformed value stocks by nearly three percentage points, the widest gap since February."
"Reports of flight reductions ordered by the Federal Aviation Administration due to staffing shortages, and concerns about delayed government data releases, weighed on investor sentiment and economic expectations. Employment data offered mixed signals. The ADP private payroll report showed 42,000 new jobs in October, ending two months of declines, though most gains were limited to a few sectors. Meanwhile, Challenger, Gray & Christmas reported that employers have announced over 1.1 million job cuts so far this year up 65% from the same period in 2024"
US equity markets lost ground last week, ending a three-week winning streak. Technology and growth-focused stocks led declines as investors reassessed high valuations and AI spending pace. The Nasdaq Composite posted the largest drop, with growth shares underperforming value by nearly three percentage points. The ongoing U.S. federal government shutdown began to affect confidence through FAA flight reductions and concerns about delayed government data. Employment indicators were mixed: ADP reported 42,000 private jobs in October, while Challenger recorded over 1.1 million job cuts year-to-date. The ISM Services Index rose to 52.4, manufacturing contracted for an eighth month, and consumer sentiment fell to its lowest since mid-2022. Treasuries gained modestly while high-yield bonds lagged; major indexes declined.
#us-equities #technology-and-growth-stocks #us-government-shutdown #employment-and-economic-indicators
Read at London Business News | Londonlovesbusiness.com
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