The decline in the S&P 500 continues, the US index closed below its 55-period moving average (120-minute chart), this is the first time it closes below the 55-period moving average since the low in April. The move below the moving average is considered a support area, there is a good chance the S&P 500 will bounce back but the trend has probably turned down. Sentiment remains jittery amid ongoing concerns over elevated AI-driven valuations, reduced expectations for a Federal Reserve rate cut in December, and broader economic uncertainty following a recent government shutdown that delayed key data releases.
Tech giant Nvidia will report earnings after the close. the AI chip giant’s results could either reignite the tech rally or deepen the pullback. Analysts expect Nvidia to “beat and raise” on Q3 revenue and provide upbeat guidance on AI capex, but any sign of slowing demand could trigger a Nasdaq selloff. Before the close we have the FOMC statement. Tonight’s FOMC minutes from the November meeting could clarify the path for December policy, with markets now pricing in just a coin-flip chance of a 25 bps cut after stronger-than-expected private-sector data. Tomorrow’s delayed September Non-Farm Payrolls report will further shape rate cut odds—stronger figures could boost yields and pressure stocks.