#USStockDrop

- U.S. stocks extended losses today, with the **S&P 500** and **Nasdaq** falling over **1%** amid rising Treasury yields and geopolitical tensions.

- The **Dow Jones** dropped **~400 points** (1.1%) as investors reacted to weak earnings reports and fears of prolonged high interest rates.

### **2. Key Drivers of the Decline**

- **Fed Rate Cut Uncertainty**: Strong economic data (e.g., PMI, jobs) suggests the **Fed may delay rate cuts**, hurting market sentiment.

- **Tech Sector Weakness**: Mega-cap stocks like **Tesla (TSLA), Nvidia (NVDA), and Meta (META)** led the downturn.

- **Middle East Tensions**: Escalating Iran-Israel conflicts and rising oil prices added to market anxiety.

### **3. Biggest Losers Today**

- **Tesla (TSLA)**: Down **~5%** after price cuts in China and weak delivery forecasts.

- **Boeing (BA)**: Fell **~3%** due to new safety concerns.

- **Regional Banks (e.g., NYCB)**: Dropped as commercial real estate fears resurfaced.

### **4. Analyst Warnings**

- **Goldman Sachs** warned of a potential **5-10% correction** if inflation stays sticky.

- **JPMorgan** cautioned that markets are **"overly optimistic"** about Fed rate cuts in 2024.

### **5. What’s Next?**

- Earnings reports from **Microsoft (MSFT), Alphabet (GOOGL), and Meta (META)** later this week could dictate market direction.

- **PCE Inflation Data (Friday)** will be critical for Fed policy expectations.