Nasdaq 100: Tech Sell-Off and Rate Fears Push US Indices Lower This Week

Stocks Slide as Rate Concerns Stall Rally; Weekly Losses Loom

U.S. equities fell sharply on Friday, halting a postelection rally as concerns about Federal Reserve policy and sector-specific pressures weighed on investor sentiment. The Dow Jones Industrial Average dropped 350 points, or over 1%, while the S&P 500 and Nasdaq Composite also saw significant declines, putting all three indexes on track for steep weekly losses.

Sector Pressures Lead Market Declines

The health care sector led the losses, down 5.3% for the week, driven by sharp drops in major pharmaceutical stocks like Amgen and Moderna, which fell 5% and 6%, respectively. The SPDR S&P Biotech ETF (XBI) tumbled over 4%, poised for its worst week since 2020, after news that President-elect Donald Trump may appoint vaccine skeptic Robert F. Kennedy Jr. to a top health policy position.

Technology stocks were also a significant drag, with Nvidia, Meta Platforms, Alphabet, and Microsoft falling more than 2% each. Nvidia continued to struggle after its recent inclusion in the Dow, losing nearly 4% since joining the blue-chip index last week. Tesla bucked the trend, gaining 3% and offering rare strength within the so-called “Magnificent Seven” tech cohort.

Renewable Energy Stock Surges Amid Upgrades

Amid the broader market downturn, Bloom Energy emerged as a standout performer. Shares soared over 51%, marking the stock’s best day on record, following a ratings upgrade from Piper Sandler. The firm raised its outlook to “overweight” from “neutral,” citing the company’s recent supply agreement with American Electric Power and potential growth opportunities. Bloom Energy has already surged 109% this month and is up 36% year-to-date.

Fed Comments and Economic Data Weigh on Sentiment

Federal Reserve Chair Jerome Powell’s remarks on Thursday dampened investor optimism. Powell reiterated that the central bank is in no rush to cut interest rates, citing continued economic growth and inflation above the Fed’s 2% target. Boston Fed President Susan Collins echoed the cautious tone, suggesting that a rate cut at the next policy meeting is far from guaranteed.

Economic data added to the mixed signals. October retail sales rose 0.4%, slightly above expectations, while inflation figures met projections. However, traders remain concerned that robust economic activity might limit the Fed’s flexibility in easing policy.

Market Forecast

As the postelection rally loses momentum, the major indexes face further downside risks. The S&P 500 is off 1.9% for the week, the Nasdaq is down 2.8%, and the Dow has shed over 1%. Traders are eyeing key catalysts such as Federal Reserve policy signals and corporate earnings to assess the market’s next move. While the energy and financial sectors showed resilience this week, broader market sentiment remains cautious, with a bearish outlook in the near term amid persistent rate uncertainties.