US Stock Market Slides: Dow Down 600 Points, S&P 500 Falls Third Day

U.S. stocks closed sharply lower on Thursday as investors shifted away from equities ahead of key inflation data, triggering broad-based selling across major sectors. The decline pushed the Dow Jones Industrial Average down nearly 600 points, while the S&P 500 recorded its third consecutive daily loss. The tech-heavy Nasdaq Composite also fell significantly, weighed down by weakness in technology stocks.

Markets reflected a cautious tone as traders positioned themselves ahead of the Consumer Price Index (CPI) report, which could shape expectations for Federal Reserve policy in the coming months.

Major Index Performance

• Dow Jones Industrial Average fell 669.42 points (-1.34%) to close at 49,451.98, slipping below the 50,000 level.
• S&P 500 dropped 1.57% to 6,832.76, moving into negative territory for the year.
• Nasdaq Composite declined 2.03% to 22,597.15, marking its sharpest fall in weeks.

The technology and energy sectors led the losses, while defensive areas showed relative stability.

Stocks That Led the Decline

Technology Stocks Under Pressure

Shares of Cisco Systems plunged 12% after issuing weaker-than-expected forward guidance. The disappointing outlook triggered a selloff across the broader tech sector.

Amazon (AMZN) fell more than 5.5% after its earnings report failed to impress investors.

Artificial intelligence concerns also played a role. Investors fear that rapid AI development may disrupt traditional industries, affecting profitability and employment levels.

Other Notable Losers

• Stellantis (STLA) plunged 25% after announcing a $26 billion restructuring charge.
• Molina Healthcare (MOH) dropped 26%, leading Nasdaq decliners.
• Doximity (DOCS) declined 17%.
• Coty (COTY) slid 16%.
• C.H. Robinson fell 14% amid fears AI could streamline freight operations and reduce revenue margins.
• Financial stocks such as Morgan Stanley came under pressure due to AI disruption concerns in wealth management.

The selloff pushed the S&P 500 below its 50-day moving average, a key technical level monitored by traders.

Stocks That Gained Despite Market Weakness

While the broader market declined, several stocks posted gains:

• McDonald’s (MCD) rose following strong earnings.
• Nvidia (NVDA) surged nearly 8% during Friday’s rebound.
• Caterpillar (CAT) jumped 7%.
• Roblox (RBLX) climbed almost 10% after earnings.
• Bitcoin treasury firm Strategy (MSTR) soared 25%.
• Crypto-related stocks including MARA Holdings (MARA), Robinhood Markets (HOOD), and Coinbase Global (COIN) rebounded strongly.
  

Bond Market and Commodities Update

Investors shifted toward bonds in a defensive move ahead of inflation data.

• 10-year Treasury yield rose to around 4.21%.
• Gold futures climbed nearly 2% to $4,975 per ounce.
• Silver futures edged higher to $77 per ounce.
• West Texas Intermediate crude traded near $63.40 per barrel.
• Bitcoin rebounded above $70,700 after dipping earlier.

These moves highlight ongoing uncertainty surrounding inflation and interest rates.

What Is Driving the Market Selloff?

Three key themes are shaping investor sentiment:

1. Inflation Concerns – CPI data could influence Federal Reserve rate decisions.
2. AI Disruption Fears – Rapid AI innovation is pressuring traditional industries.
3. Corporate Earnings Volatility – Weak guidance is causing sharp single-stock reactions.

The combination of macroeconomic uncertainty and sector-specific risks has increased market volatility.

Conclusion

The U.S. stock market experienced a sharp pullback as investors adopted a risk-off approach ahead of key inflation data. Technology and energy stocks led the decline, while selective names in consumer, industrial, and crypto-related sectors posted gains.

Although markets rebounded the following day, volatility remains elevated. With inflation data, Federal Reserve policy signals, and AI disruption concerns in focus, investors are navigating a complex economic landscape.

The coming weeks will be critical in determining whether this selloff represents a temporary correction or the beginning of a broader market shift.

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Disclaimer

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.