Technology and Healthcare Sectors Under Pressure
U.S. stocks declined on Thursday, weighed down by losses in the technology and healthcare sectors. The S&P 500 technology index fell 0.2% after hitting a record high the previous day, signaling caution among investors ahead of Friday’s employment report. Shares of Synopsys, a chip design software firm, plunged 12.4% following a disappointing revenue forecast for fiscal 2025, partly attributed to declining sales in China.
Meanwhile, healthcare stocks also struggled, with UnitedHealth leading the losses. Its shares dropped 5.2%, marking the steepest decline on both the Dow Jones Industrial Average and the S&P 500. Other major health insurers, including Cigna and Molina Healthcare, saw declines of 2.3% and 3.2%, respectively. The S&P 500 healthcare index slid 1.1% amid concerns over sector risks following the murder of UnitedHealthcare CEO Brian Thompson in Manhattan.
Anticipation Builds for Jobs Data
Investor sentiment was further influenced by anticipation of the Labor Department’s upcoming employment report. Analysts surveyed by Reuters forecast a November increase of 200,000 nonfarm payroll jobs, a notable rise compared to the modest 12,000 added in October. The report’s findings are expected to shape market expectations for Federal Reserve policy moves. Daniel Morgan, portfolio manager at Synovus Trust, noted that the market is keenly focused on the Federal Reserve’s next steps, particularly in light of recent economic data.
Earlier on Thursday, a slight uptick in unemployment benefit applications added to the cautious mood. The Dow Jones fell 248.33 points, or 0.55%, to 44,765.71, while the S&P 500 dropped 11.38 points, or 0.19%, to 6,075.11. The Nasdaq Composite also declined, losing 34.86 points, or 0.18%, to close at 19,700.26.
Bitcoin Rally Fizzles and Market Trends
After a brief surge that saw bitcoin surpass the $100,000 milestone for the first time, cryptocurrency-related stocks lost momentum. MicroStrategy, the largest corporate holder of bitcoin, ended the day down 4.8%. Broader market activity reflected investor caution, with declining stocks outnumbering advancing ones by a ratio of 1.25-to-1 on the NYSE and 1.9-to-1 on the Nasdaq. Despite these trends, there were 378 new highs compared to 74 new lows on the NYSE.
Federal Reserve Chair Jerome Powell’s remarks on Wednesday about the U.S. economy’s unexpected resilience added another layer of complexity to market expectations. Powell hinted at a slower pace of interest rate cuts, with markets pricing in a 70% probability of a quarter-point reduction this month. Trading volumes on U.S. exchanges totaled 14.12 billion shares, slightly below the 20-day average of 14.7 billion, as investors braced for Friday’s critical data release.
