Financial Markets                      11/06 15:35

   

   NEW YORK (AP) -- Wall Street lost ground Thursday as influential technology 
stocks fell and once again steered the broader market.

   The technology sector has been the driving force behind the market's 
direction, whether up or down, all week. Thursday's losses pushed nearly every 
major index solidly into weekly losses. If that momentum holds on Friday, it 
would break a three-week winning streak for the S&P 500, the Dow Jones 
Industrial Average and the Nasdaq composite.

   The S&P 500 fell 75.97 points, or 1.1%, to 6,720.32. The Dow fell 398.70 
points, or 0.8%, to 46,912.30. The Nasdaq fell 445.80 points, or 1.9%, to 
23,053.99.

   The biggest weights on the market included Nvidia, which fell 3.7%, and 
Microsoft, which fell 2%. Their huge values give them outsized influence over 
the market's direction. Other big stocks dragging down the market included 
Amazon, which slumped 2.9%.

   Corporate earnings and forecasts remained the big focus for Wall Street on 
Thursday. The latest round of results and statements from executives could help 
shed some light on the condition and path ahead for the economy amid a lack of 
broader information on inflation, employment and retail sales because of the 
ongoing government shutdown.

   DoorDash sank 17.5% for one of the sharpest drops on Wall Street. The food 
delivery app warned investors that it will be spending significantly more on 
product development next year.

   CarMax slumped 24.3% after giving investors a disappointing financial update 
and announcing that CEO Bill Nash is stepping down in December.

   Software company Datadog jumped 23.1% after its latest earnings beat 
analysts' forecasts. Rockwell Automation rose 2.7% after turning in results 
that easily beat analysts' forecasts.

   It has been a wobbly week for major indexes, which set record highs last 
week. The broader stock market has had a record-setting year, but that has 
raised worries that stocks could be overvalued. Those concerns are even more 
focused on big technology companies that have been leading the market higher 
amid the focus on artificial intelligence advancements.

   The latest round of earnings is being closely monitored to gauge whether the 
stock market's big values are justified. The results are also helping to fill 
in gaps in information because of the U.S. government shutdown, which is now 
the longest on record.

   Another week of unemployment data was missing Thursday because of the 
shutdown. It has already resulted in a lack of monthly employment data for 
September and will likely result in missing employment data for October, along 
with a lack of data on consumer prices for October.

   Outside of company updates, Wall Street is relying more on economic updates 
from other private sources. Private payrolls rose more than expected in 
October, according to a report Wednesday from ADP, and the services sector 
expanded in October, according to the Institute for Supply Management. The data 
can vary widely, however.

   Job cuts in the U.S. surged 175% in October from a year ago, according to a 
report released Thursday from outplacement firm Challenger, Gray & Christmas. 
The reasons include softer consumer and corporate spending, rising costs, and 
the adoption of artificial intelligence.

   The absence of updates on the job market and inflation has left the Federal 
Reserve in the dark at the same time that employment was weakening and 
inflation heating up. That leaves the central bank in a tough spot. It has to 
decide whether cutting its benchmark interest rate to counter the economic 
impact from a weaker job market is worth the risk of worsening inflation.

   Lower interest rates can help stimulate the economy by making loans less 
expensive, but they can also fuel inflation.

   "We anticipate the Fed will continue to implement rate cuts to prevent any 
weakness in employment from accelerating," said Seema Shah, chief global 
strategist at Principal Asset Management. "Much of the market's optimism hinges 
on the assumption that policymakers will maintain some level of support."

   The Fed has already cut its benchmark interest rate twice this year. It has 
signaled more caution as it tries to navigate the risks to the economy. Wall 
Street is forecasting a 71% chance that the central bank cuts interest rates in 
December, according to CME FedWatch. That's down from more than 90% just prior 
to the most recent interest rate cut.

   The U.S. government shutdown is having a direct impact on airlines, as 
airports face critical staffing problems. The Federal Aviation Administration 
will reduce air traffic by 10% starting Friday across 40 "high-volume" markets. 
American Airlines fell 2%, Delta Air Lines fell 1.2% and United Airlines fell 
1%.

   European markets fell after a divided Bank of England kept its main interest 
rate unchanged. Asian markets closed higher.

   Treasury yields moved lower in the bond market. The yield on the 10-year 
Treasury fell to 4.09% from 4.16% late Wednesday. The yield on the two-year 
Treasury fell to 3.56% from 3.63% late Wednesday.

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