**Tech Stocks Lead Broad Market Drop as Nasdaq Sees Third Straight Loss**

U.S. stock markets took a sharp hit on Thursday, especially in the tech sector. The Nasdaq Composite fell for the third day in a row, dropping nearly 2% as investors pulled back from big, expensive technology stocks. This continued shift away from high-growth tech names weighed heavily on the broader market.

The S&P 500 also fell by 1.25%, dragged down by its large tech holdings, despite strength in other areas like healthcare and industrials. Meanwhile, the Dow Jones Industrial Average slipped nearly 1% after hitting a record high above 48,000 earlier in the week. Most of that drop came from Disney’s disappointing earnings, not from weakness in the broader economy.

Smaller companies weren’t spared either. The Russell 2000 index dropped 1.65% as traders adjusted their expectations for interest rate cuts from the Federal Reserve. A December rate cut now looks less likely, with odds falling from 63% to around 51% in just one day.

**Big Tech Stocks Under Pressure**

The biggest drag on the market came from the top tech giants, often called the “Magnificent Seven.” These stocks saw steep losses:

– **NVIDIA** dropped over 4% as traders grew nervous ahead of its earnings.
– **Alphabet (Google)** fell about 2.5% amid doubts about advertising strength.
– **Amazon** slid over 2% on signs of slowing consumer spending.
– **Tesla** tumbled more than 6%, hurt by concerns about electric vehicle demand in a high-rate environment.
– Even **Microsoft** and **Apple**, which held up better, still closed slightly lower.

The Roundhill Magnificent Seven ETF, which tracks these megacap tech stocks, lost over 3%, showing how concentrated the pain was. This selloff highlights a key risk: when a few big tech names carry most of the market’s weight, their weakness can drag everything else down.

**Disney’s Weak Earnings Hit the Dow Hard**

Walt Disney was the Dow’s biggest loser after reporting mixed earnings. Revenue came in below expectations at $22.46 billion, even though earnings per share beat estimates. Investors focused on weak performance in Disney’s TV and movie business, which offset gains in parks and streaming. The stock plunged nearly 9%, knocking more than 300 points off the Dow.

**Cisco Rallies Toward Historic Highs**

While most tech stocks fell, **Cisco Systems** stood out with a strong rally of over 4%. The company beat revenue and earnings expectations and raised its full-year forecast. Cisco is now closing in on its dot-com-era highs, but this time the rise is supported by strong cash flow and demand for AI infrastructure—not hype.

**Government Shutdown Ends, But Data Gaps Remain**

The federal government finally reopened after a six-week shutdown, but key economic data like October’s jobs report and inflation numbers are missing—and may never be released. That lack of data leaves investors and the Federal Reserve flying blind ahead of their December meeting.

This uncertainty caused Treasury yields to bounce early in the day before settling. The 10-year yield ended at 4.105%, while the 2-year hit 3.597%. With no fresh data to guide decisions, rate-sensitive stocks stayed under pressure.

**Healthcare Leads as Tech Falters**

As tech stocks slumped, investors rotated into more stable sectors like healthcare and industrials. The S&P 500 Healthcare Sector jumped 5.5% this week, far outpacing the flat performance of the tech sector. This rotation helped cushion the market’s overall decline.

Stocks tied to value and income—like utilities and industrials—also held up better. The Equal Weight version of the S&P 500 only fell about half as much as the regular index, showing that it wasn’t a broad market selloff—just concentrated weakness in tech.

**Crypto Market Shifts as XRP ETF Launches**

In crypto news, **XRP** saw a spike of about 3-4% after the launch of the first U.S.-based spot XRP ETF by Canary Capital. It traded $26 million worth of shares within just 30 minutes. This comes after similar ETF launches for Bitcoin, Ethereum, and Solana.

**Bitcoin** dipped slightly as traders moved funds into XRP. **Ethereum** ticked higher as part of a broader shift toward alternative cryptocurrencies. The return of volatility suggests renewed interest in digital assets amid market uncertainty.

**Mixed Signals from Chinese Tech Stocks**

Chinese tech companies had mixed results:

– **Tencent** gained after reporting better-than-expected revenue and profit growth, driven by WeChat and enterprise software.
– **JD.com** dropped due to shrinking profits linked to its expansion into food delivery.
– **Alibaba** also declined slightly as investors reconsidered exposure to China’s consumer market during ongoing economic uncertainty.

**Big Moves in Mid-Cap Stocks**

Several mid-sized companies made notable moves:

– **Firefly Aerospace** surged nearly 18% after posting smaller-than-expected losses and raising its revenue outlook.
– **Dillard’s** jumped almost 20% after beating sales expectations with strong same-store growth.
– **TKO Group** gained slightly after announcing a new partnership with Polymarket to add live prediction data to UFC broadcasts.
– **Lyft** got a boost after analysts raised their price target, citing improving margins and stable demand outlook.
– **Starbucks** faced some trouble as union workers walked out during Red Cup Day, disrupting operations on one of its busiest days.

**Precious Metals Shine Amid Uncertainty**

Commodities found support with investors looking for safety amid missing economic data:

– **Silver** hit new highs with strong inflows from both institutional and retail investors.
– **Gold** held steady despite small losses during the day.
– The S&P GSCI Spot Index also rose slightly as commodity demand held firm.

**Oil Prices Stabilize Above $59**

Crude oil prices steadied above $59 per barrel after recent swings caused by data delays. Traders are waiting for updated demand forecasts now that government agencies are back online. Energy stocks outperformed tech as investors looked for more stable, cash-generating sectors.

**Bond Market Calms but Liquidity Worries Grow**

Treasury yields settled after early volatility, with the benchmark 10-year holding just above 4.1%. However, analysts are watching for signs of tighter liquidity and funding stress due to the Fed’s shrinking balance sheet and missing economic data.

The **VIX**, Wall Street’s fear gauge, jumped nearly 10% to a one-month high at 19.17. That shows traders expect more volatility ahead—not just from daily swings but from deeper shifts in how the market is moving as tech dominance fades and other sectors take the lead.