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Nasdaq Leads US Indices Downturn Amid Fed Rate Hike Anticipation

Published 18/10/2023, 01:02 am
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Tuesday saw a major downturn in US stock indices, with the NASDAQ index leading the decline by dropping over 1.1%, as market instability looms under the possibility of a Federal Reserve decision for a 25 basis point hike on November 1. This downturn was further fueled by higher yields prompted by anticipated retail and industrial growth.

In the wake of these developments, shares of Nvidia (NASDAQ:NVDA), the multinational technology company, plummeted by -5.68%. The drop was a result of the US government's restrictions on certain chip exports due to security concerns.

Other significant indices also recorded declines. The Dow Industrial Average fell by -50.05 points (-0.15%), and the S&P index dropped -28.35 points (-0.65%).

Despite the bearish trend in the stock market, US rates ascended, reflecting encouraging retail sales data. This shows a silver lining in an otherwise gloomy market scenario, suggesting that consumer spending continues to be robust amidst economic uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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