US Stocks End Losing Streak Amid Tech Valuation Jitters and Shutdown Deal Hopes

US stocks ended their three-week winning streak on Friday. The S&P 500 Index finished up 0.1% in New York, recovering from an earlier 1.3% drop as investors assessed potential progress on the US government shutdown. The tech-heavy Nasdaq 100 Index, however, dropped 0.3%, breaking its own three-week win streak.

Key drivers included investor concerns over stretched valuations, particularly in the technology sector, following an AI-driven rally. Companies like Palantir Technologies Inc., Super Micro Computer Inc., and Qualcomm Inc. reported results that underwhelmed. Restarted negotiations for a government shutdown resolution provided some relief, preventing a steeper market decline. The shutdown has delayed economic data, though private data suggests a cooling labor market, which experts believe supports the Federal Reserve's plan for rate cuts. Data from Challenger, Gray & Christmas Inc. indicated record job cuts for October, influenced by AI and cost-cutting.

Company-specific news also played a role: Take-Two Interactive Software Inc. fell after delaying the release of Grand Theft Auto VI, Block Inc. tumbled after missing earnings targets, and Tesla Inc. traded lower after shareholders approved a large compensation package for CEO Elon Musk.

Impact: This news directly impacts the US stock market by influencing investor sentiment, stock prices, and economic outlook. Global markets may react to US tech sector performance and economic policy shifts. The Federal Reserve's potential rate cut strategy is also a key takeaway, which can indirectly affect markets worldwide, including India, through capital flows and currency movements. Impact Rating: 7/10