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Nasdaq 100 Falls 2% as Tech-Led Stock Rout Deepens: Markets Wrap

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(Bloomberg) — A selloff in the world’s largest tech companies weighed heavily on stocks, while Treasury yields climbed amid bets the Federal Reserve will take a more measured approach on rate cuts.

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Equities extended losses into a third straight day, with the S&P 500 breaking below 5,800. Nvidia Corp. tumbled 4%, leading megacaps lower. Apple Inc. slid 3% after a closely followed analyst said iPhone 16 orders were cut by about 10 million units from the fourth quarter through the first half of 2025. As Tesla Inc. gets ready to report its results, Wall Street will be watching for signs that slowing sales are close to a trough.

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Investors face a number of risks that could be making them less willing to jump into the market: The next three weeks capture big tech earnings, October’s payrolls report, and the US election, followed by the Fed meeting. In another sign of Wall Street’s perception of future risk, the term premium on 10-year Treasury notes — an expression of the extra yield investors demand for owning the debt rather than rolling over shorter-term securities — hit the highest since November.

“This is about price exhaustion, this is about election exhaustion, it’s about campaign exhaustion, it’s about Fed exhaustion, it’s about policy exhaustion, it’s about geopolitical exhaustion,” said Kenny Polcari at SlateStone Wealth. “It’s about how stocks are stretched and it’s about the need for stocks to retreat, test lower, shake the branches, see who falls out and then move on.”

The S&P 500 fell 1.4%. The Nasdaq 100 dropped 2.1%. The Dow Jones Industrial Average slipped 1.3%. Boeing Co. dropped after signaling the company’s woes will take time to fix. Qualcomm Inc. got hit as Arm Holdings Plc canceled a license that allowed the company to use Arm’s intellectual property to design chips. Texas Instruments Inc. climbed after its results.

Treasury 10-year yields rose four basis points to 4.25%. A $13 billion sale of 20-year bonds tailed at the highest yield since May. The dollar rose against all of its Group-of-10 peers, on pace for its best month since 2022. The yen hit the lowest in almost three months, reviving concern that Japan may intervene. The loonie slid after the Bank of Canada stepped up the pace of easing.

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