📉🔥 Wall Street Hit by Sharp Pullback as Volatility Rises
After weeks of historic highs, U.S. stocks stumbled, signaling that investors are finally hitting the brakes.
🔻 Index Performance
S&P 500 closed at 657.94, down 0.5% from the last session.
Dow Jones slipped 0.2%.
Nasdaq Composite tumbled 0.9%, dragged by tech giants.
⚠️ Why Are Markets Sliding?
Overheated Valuations → With the S&P 500 already up 13.2% YTD, Jerome Powell’s remark that equities look "richly priced" sparked heavy profit-taking.
AI Bubble Fears → Hype around artificial intelligence is facing scrutiny, hitting leaders like Nvidia, which weighed heavily on the Nasdaq.
Mixed Economic Data → Jobless claims fell to 218K (a strong sign), but housing weakness, sticky inflation, and slower hiring raised concerns.
Fed Policy Jitters → The Fed’s cautious rate-cut path (eyeing 3.75% by year-end from 4.75%) plus tariff risks are keeping investors nervous.
📊 Volatility on the Rise
Markets are swinging wildly: S&P 500’s range on Sept 25 stretched from 654.44 → 661.64.
The rally that pushed the index to its 28th record high of 2025 has now been disrupted.
🔮 What’s Next?
Tech giants under pressure could see money rotate into undervalued small-caps and value plays.
Investors remain cautious with Fed policy, inflation risks, and tariff uncertainties hanging over markets.
Despite turbulence, the S&P 500 is still up double-digits this year, showing resilience.
👉 The latest drop is less about panic and more about reality checks—Wall Street is bracing for a bumpier ride ahead.