market report
Wall Street turns negative after a solid start. Inconsistent labor market data caused interest rate concerns and brought an abrupt end to AI euphoria. DAX follows the US market.
Today is not a day for the faint of heart on Wall Street. Because after Nvidia got in front of the Fed – prices on Wall Street have turned negative after the initial euphoria over better-than-expected quarterly numbers from leading AI company Nvidia. Nvidia shares started up about five percent and ended trading nearly three percent lighter at $180.98.
The reason for this change in direction is inconsistent labor market data, reducing interest rate expectations. This means that Wall Street is quickly turning to a new agenda after concerns about the high valuations of technology shares previously prompted caution – and it is once again clear how important interest rate developments are for the stock market.
In the end, all of Wall Street’s main stock indexes closed in the red zone. The main Dow Jones index fell 0.84 percent to 45,752 points; the daily high was 46,856 points in the morning.
The Nasdaq technology index fell significantly. After gaining about two percent in early trading, the composite index fell 2.15 percent and the Nasdaq 100 preferred index fell 2.38 percent. The market-wide S&P 500 lost 1.56 percent.
Although the AI bubble topic has lost some of its focus after Nvidia’s numbers, at least in the short term, the focus is now on US monetary policy. The next interest rate decision from the US Federal Reserve (Fed) is expected on December 10.
“New” data from the labor market for September, the first after the lockdown, caused irritation. Because the labor market has surprisingly improved significantly. 119,000 new jobs outside agriculture were added, according to a highly anticipated government report this afternoon. Economists surveyed only expected an increase of 50,000 jobs. However, the separately determined unemployment rate rose to 4.4 from 4.3 percent in September.
The recent shutdown dampened interest rate optimism, said Christian Henke, market analyst at broker IG Markets. “Not only has the lack of economic data made things difficult for the Fed, market players have also recently had to fly without visibility,” the expert said.
Helaba sees the data dampening interest rate expectations. Data for October and November is scheduled to be published in mid-December, a few days after the US Federal Reserve’s next interest rate decision. This means there are still doubts regarding further interest rate cuts.
After a strong third quarter, the world’s largest retailer Walmart is more optimistic for the financial year that runs to the end of January. Management around CEO Doug McMillon raised its forecast for a second time and now expects a currency-adjusted sales increase of 4.8 to 5.1 percent, versus 3.75 to 4.75 percent previously announced in August. Its shares recently rose 6.47 percent and are at the top of the Dow.
Management also announced that Walmart’s share listing will move to the Nasdaq exchange on December 9, 2025. The paper is currently listed on the New York Stock Exchange.
Trading on the Frankfurt Stock Exchange today was mainly dominated by developments on Wall Street. The huge numbers from leading AI company Nvidia are also well received in the country. At the end of business, Germany’s main index was unable to sustain higher levels with Wall Street weakening and ultimately closed half a percent higher at 23,278 points. The daily high was 23,512 points, a technically important resistance level that was ultimately insurmountable.
Things got worse today for mid-cap stock MDAX, which has little to do with the US tech sensation. The index fell 0.74 percent to 28,443 points.
