The most recent assessment on the job market only strengthened the case for the Federal Reserve's higher-for-longer position, while stocks dropped to their lowest level since June and Treasury 10-year yields increased.
The S&P 500 fell more than 1.5%. All significant US equity indexes dropped below their important 100-day moving averages, which some technical analysts saw as a bearish warning. A megacap rout was headed by Nvidia and Amazon. After agreeing to purchase Splunk for $28 billion, Cisco Systems' stock fell. A rumour that Alphabet's Google may stop using Broadcom as a supplier of artificial intelligence chips as early as 2027 caused the price of Broadcom to decline.
US yields on longer terms increased, with 10-year rates rising to a level last seen in 2007 (about 4.5%). The two-year note yield decreased in the interim. The difference between the two yields, which is used as a gauge of economic confidence, decreased.
