US equities ended Thursday’s session with steep losses, driven by a broad technology sell-off and renewed uncertainty over the Federal Reserve’s path for interest rates. The downturn marked one of the weakest closes this month, with investors turning decisively risk-averse.
Major indices retreat
The Dow Jones Industrial Average fell firmly into negative territory, pulling back after recent strength. The S&P 500 also registered a sizeable decline, weighed down by weakness across growth sectors. The Nasdaq Composite posted the heaviest losses of the session, reflecting mounting pressure on high-valuation technology names.
Tech stocks lead the downturn
Large-capitalisation technology and AI-focused companies saw marked declines throughout the afternoon. Semiconductor names in particular lost ground, with major chipmakers succumbing to profit-taking and concerns that earnings expectations may be stretched. The broader technology sector followed suit, creating a drag that pulled the indices lower into the close.
Rate-cut expectations recalibrate
The market’s negative tone was amplified by shifting expectations around monetary policy. Recent comments from Federal Reserve officials suggested that inflation remains sufficiently persistent to delay any move towards easing. As a result, traders reduced the probability of a December rate cut, prompting a reassessment of risk assets and curbing appetite for growth stocks.
Macro backdrop adds pressure
The economic environment remained clouded by residual uncertainty following the federal government’s recent shutdown, which temporarily disrupted data releases and muddied visibility. With fewer fresh indicators available, markets reacted more strongly to policy signals and sector-specific developments. Defensive stocks held up comparatively better, though they offered limited support against broader selling pressure.
Outlook remains cautious
Thursday’s closing performance underlined the fragility of sentiment heading into the final stretch of the year. Should inflation data continue to surprise on the upside, or should rate-cut expectations drift further into 2026, volatility across tech and growth-aligned sectors may persist. Investors are now watching upcoming macro releases closely for clarity on the Fed’s next steps.
Newshub Editorial in North America – 14 November 2025
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