US stock indexes closed lower on Thursday, with the S&P 500 down -1.66%, Dow Jones down -1.65%, and Nasdaq 100 down -2.05%. Chipmaker weakness and tech stock slides contributed to the market decline amid concerns of upcoming economic reports and Fed rate cuts. T-note yields rose, reducing chances of a December rate cut.

President Trump signed legislation to end the government shutdown, providing full-year funding for some departments. CBO projects a 1.5% GDP reduction in Q4 due to the shutdown. The White House expects delayed economic reports to be released soon. Q3 earnings season saw 82% of S&P 500 companies exceeding forecasts.

Overseas markets had mixed results, with Euro Stoxx 50 down -0.77%, Shanghai Composite up +0.73%, and Nikkei up +0.43%. T-note yields rose, European bond yields increased, and US Treasuries saw weak demand. Eurozone industrial production rose, while UK industrial production fell. UK GDP growth missed expectations.

Chip stocks, including ARM Holdings, Intel, and Broadcom, led the market decline on Thursday. Weakness in technology giants like Tesla and Nvidia also contributed to the slide. Ardent Health, Webtoon Entertainment, and Ibotta Inc reported significant stock drops. Sealed Air Corp, Firefly Aerospace, and Dillard’s Inc saw gains.

Stocks like Cisco Systems, Albemarle, and Nike saw gains on Thursday. Earnings reports from Qnity Electronics were released. Fed comments and economic uncertainties continue to impact market sentiment.

Read more at Nasdaq: Stocks Slump on Reduced Fed Rate Cut Chances