US stock indexes took a hit today, with the S&P 500, Dow Jones, and Nasdaq 100 all dropping to fresh 2-week lows. Tech and semiconductor weakness, economic concerns, and job cut reports fueled the decline. Fed Vice Chair’s hawkish comments added pressure. Chinese trade data also disappointed, impacting global growth prospects.

The US government shutdown, now the longest in history, is dampening market sentiment and economic activity. The shutdown’s adverse effects are felt across various sectors, delaying crucial government reports. Markets are pricing in a 72% chance of a -25 bp rate cut at the next FOMC meeting, amidst ongoing economic uncertainties.

The US Supreme Court is questioning the legality of President Trump’s reciprocal tariffs, potentially impacting over $80 billion in collected tariffs. Q3 earnings season shows strong results but with slower growth. Overseas markets are down, with European bond yields rising. German trade data beats expectations, while ECB remarks on the Eurozone economy are cautiously optimistic.

Treasuries are up today amid stock weakness and lower inflation expectations. Fed comments and ongoing government shutdown provide support. European bond yields rise on positive German trade data. Corporate earnings continue, with notable stock movements in tech companies like Microchip Technology, Tesla, and Nvidia. Healthcare and beverage sectors see gains. News Corp reports strong Q1 revenue.

Read more at Nasdaq: Economic Angst Weighs on Stocks