A major tech stock sell-off triggered a significant market drop starting from Thursday, November 13, erasing recent gains. The S&P 500 fell 1.66%, and the Dow Jones Industrial Average dropped 1.65%, both hitting one-month lows. This occurred just a day after the Dow had reached a new record high above 48,000.
Leading the decline were major technology companies. Tesla shares fell 6.64%, while Palantir Technologies dropped 6.53%. Nvidia, which recently achieved a $5 trillion valuation, saw its shares fall 3.58%. According to CNBC, this sell-off was fueled by growing investor concerns over "overinflated valuations."
The downturn coincided with shifting expectations for Federal Reserve interest rate cuts. Data from the CME FedWatch Tool, confirmed via a web search, shows the probability of a December rate cut plummeted from over 98% a month ago to just 50.1% on Thursday, amplifying market volatility and fears that the high-flying tech rally was stalling.