Dow Jones Today: Major Stock Indexes Decline Amid AI Valuation Concerns
Major U.S. stock indexes closed lower on Thursday amid renewed worries over AI valuations. The Nasdaq, heavily weighted with technology stocks, dropped 1.9%, while the S&P 500 decreased 1.1%, and the Dow Jones Industrial Average fell 0.8%.
The previous day saw all three indexes finish higher during the record-breaking 36th day of the U.S. government shutdown, as investors temporarily dismissed AI bubble fears and noted the Supreme Court's skepticism toward President Donald Trump's tariffs.
Economic Indicators and Market Reactions
With limited government economic data due to the shutdown, market watchers focused on alternative data sources. Consulting firm Challenger, Gray & Christmas reported 153,074 job cuts announced by U.S. employers in October, marking the highest number for that month since 2003.
- The 10-year Treasury yield, which affects consumer loan interest rates, dropped from 4.16% to 4.09%.
- The U.S. dollar index, reflecting the dollar's strength against foreign currencies, weakened by 0.5% to 99.69.
Commodities and Cryptocurrency Update
Bitcoin, which had fallen below $100,000 on Tuesday for the first time since June, was trading near $100,900 at 4 p.m. ET, down from a high of about $104,200 earlier in the day. Gold and West Texas Intermediate crude futures remained largely steady at around $4,000 an ounce and $59.55 per barrel, respectively.
Tesla Stock Declines Ahead of Key Shareholder Meeting
Tesla’s stock dipped 3.5% before a shareholder meeting scheduled to begin at 3 p.m., where crucial proposals including CEO Elon Musk's trillion-dollar pay package will be voted on.
"Tesla stock fell 3.5% ahead of a shareholder vote on CEO Elon Musk's trillion-dollar pay package and other proposals in a meeting set to start at 3 p.m."
Author’s summary: Stock markets weakened due to renewed AI valuation concerns and economic uncertainties, while Tesla's shares dropped ahead of a significant shareholder vote on CEO Elon Musk’s compensation plan.