U.S. stocks suffered a broad sell-off on Thursday, with technology and semiconductor stocks among the hardest hit. Tech stocks dragged the three major indices lower, with the Dow Jones Industrial Average closing down 3.4%, the S&P 500 down 4.3%, and the Nasdaq down 5.5%. Micron Technology (MU.O) fell 17%, SanDisk (SNDK.O) dropped 22%, SK Hynix (SKHY.O) declined 13%, Nvidia (NVDA.O) fell more than 9%, AMD (AMD.O) dropped 17%, and Tesla (TSLA.O) fell 10%.
Investors are accelerating their reduction of exposure to risk assets and shifting funds into U.S. Treasuries and money market funds. As AI-related stocks faced a massive sell-off, short-term U.S. Treasuries became popular with investors. The yield on the two-year U.S. Treasury fell nearly 11 basis points on Thursday to about 4.48%, the lowest level since September 9.
Meanwhile, the latest data from the Investment Company Institute (ICI) showed that assets in U.S. money market funds have risen to a record $8.016 trillion, reflecting a large amount of capital choosing to wait on the sidelines.
Gina Hinojosa, governor-elect of Texas, said, “Don’t hate data centers; hate the way they take advantage of Texans. We can build a strong partnership with Musk and his companies on our terms. Until we find measures to protect the safety of Texans, we must halt the current construction of data centers.”
TrendForce has warned of regulatory risks for U.S. data centers, and some projects scheduled after 2028 may be delayed.
U.S. President Trump posted that the stock market experienced one of the worst trading days in history due to the election results. It was not caused by Republicans, but by the “Dumocrats.”
The U.S. October nonfarm payrolls report will also be released tonight. The unemployment rate is expected to remain unchanged at 4.1%, employment is expected to rebound to 65,000, while the year-over-year hourly wage growth rate is expected to fall from 3.0% to 2.9%. With Democrats sweeping Congress this week, market focus has been drawn to the cooling of U.S.-Iran tensions and stronger AI regulation, which may force the impact of nonfarm payrolls to diminish.
In addition, attention to the U.S. one-year inflation expectations and consumer confidence data at 23:00 may increase, as the market wants to see whether Democratic control of Congress will help bring inflation expectations under control and improve consumer confidence.
Plugin Case Studies
Gold: Price surged overnight before pulling back, and is now consolidating within a descending channel. During the day, watch support in the 4040/20 area. If liquidity in this area is swept, watch for a V-shaped reversal signal. On the other hand, the key resistance above the channel is around 4080; if price breaks through and holds, a pullback-buy opportunity should also be considered.
(Gold 15-minute chart)
Nasdaq: Democrats have begun political maneuvering, and short-term price volatility has deepened. A second dip into the 26,000/26,200 area cannot be ruled out. However, we believe that in the long term, the AI narrative remains a major driver of U.S. economic growth, and the outlook remains positive after the correction completes. If momentum recovers intraday, a short-term long position can be attempted.
(Nasdaq 15-minute chart)
Crude Oil: Price corrected and rebounded, reclaiming the 90 level, while the key liquidity area above has moved up to around 94. During the day, we will continue to watch for pullback signals after liquidity sweeps.
(Crude Oil 15-minute chart)
Key Financial Data and Events to Watch Today:
21:30 U.S. October seasonally adjusted nonfarm payrolls (10,000s)
23:00 U.S. November one-year inflation expectations, preliminary
23:00 U.S. November University of Michigan consumer sentiment index, preliminary
