S&P500: Nvidia, Alphabet, Tesla Sink as Tech Sector Faces Broad Rebalancing

Wall Street Slips as Traders Brace for Data Gaps After Shutdown Ends

Wall Street pulled back on Thursday as traders took a cautious stance following the government’s reopening. President Trump’s signature on a bill to end the longest shutdown in U.S. history cleared the path for delayed economic reports, but not all data will be coming back. That uncertainty, paired with a rotation out of tech, weighed on sentiment.

At 16:28 GMT, the Dow was down 398 points or 0.82% to 47,856.79. The S&P 500 dropped 1.14%, and the Nasdaq sank 1.78%, logging its third straight daily loss. The pullback reflected caution heading into a stretch with limited visibility on inflation and jobs, and mixed corporate signals across sectors.

What Economic Data Are Traders Watching?

Markets are flying partially blind. The White House confirmed that October’s CPI and jobs reports may never be released. For now, investors are relying on private data like ADP payrolls—which showed more than 11,000 job cuts per week through late October—and Indeed’s hiring index, which flagged a 16% year-over-year drop in retail postings.

This lack of official data is clouding the Fed’s view and raising the odds of choppy sessions ahead. Some traders are bracing for surprise inflation readings or weaker jobs data once the releases resume.

Is Sector Rotation Driving the Tech Selling?

Absolutely—and it’s punishing tech in the process. Information technology dropped 2% and communication services fell 1.6%, dragging the broader market lower. Nvidia fell 2.6% and Alphabet slid 2.3% as investors booked profits in high-growth names.

Defensive sectors fared better. Healthcare gained 0.89%, led by strength in Gilead (+2.7%), Merck (+2.6%), and Regeneron (+3%). Energy was also higher by 0.87%, helped by a rebound in crude prices and gains in APA Corp (+4.4%).

Consumer discretionary was hit the hardest, falling nearly 2% on weakness in Tesla (-5.7%) and Disney (-9.3%). Disney slid after signaling a protracted fight with YouTube TV over content distribution—an added headwind for the struggling media segment.

Industrials (-0.95%) also lagged, with Jabil falling nearly 5% and Iron Mountain off 5.9%. Financials edged down 0.6% even as Treasury yields held steady. Utilities and real estate sectors slipped modestly, while consumer staples eked out a small gain.

Is the Fed Putting a Floor or a Ceiling on This Market?

It’s not clear yet. Several Fed officials have expressed skepticism over another rate cut this year, and rate cut odds for December have slipped from 70% to 53% in just a week, according to the CME FedWatch tool. That’s keeping a lid on bullish momentum, especially in rate-sensitive names.

Bond yields have been relatively stable, but equity traders aren’t making big bets without a clearer view of inflation and growth. Comments from Fed speakers are being dissected closely, and the tone so far isn’t offering much relief.

What’s the Bottom Line?

With the shutdown over but the data still missing, traders are leaning defensive and staying nimble. The Dow is holding up thanks to strength in healthcare and industrials, but tech and discretionary names are losing steam. Nvidia’s earnings next week could be a pressure test for the AI trade, and any surprise economic data could reset rate expectations. Until then, the market looks cautious—and rightly so.

More Information in our Economic Calendar.