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Oracle's earnings showed mixed results, leading to an 11% drop. Broadcom's strong earnings overshadowed by warnings of margin pressures.
The valuations of some artificial intelligence companies are approaching those of the dot-com boom. But investors worry that pulling money from today’s market risks future gains.
Wall Street's "fear gauge" was rising on Wednesday ahead of the Federal Reserve's final rate decision of the year. The Cboe Volatility Index, or "VIX," was up 2.6% to 17.34, according to FactSet. The index is a gauge of expected volatility in the the stock market over a 30-day time horizon.
19hon MSN
Brace for a swift 20% drop in the S&P 500 if recession strikes in 2026, Wall Street forecaster says
If all remains well with the US economy in 2026, investment bank Stifel sees 9% for the S&P 500. If it doesn't, prepare for a swift 20% drop.
The S&P 500 and the Nasdaq closed down more than 1% on Friday with investors leaving technology for other sectors as Broadcom and Oracle fueled concerns about an AI bubble and rising U.S. Treasury yields added pressure after some policymakers spoke out against easing monetary policy.
Wall Street ended lower as Nasdaq fell 1.69% to 23195.17, S&P 500 dropped 1.07%, and Dow Jones Industrial Average slipped 0.51%.
The U.S. stock market is flirting with its all-time high after the Federal Reserve cut its main interest rate to bolster the job market.