Key Takeaways
- U.S. stock indices, including the Dow, S&P 500, and Russell 2000, recorded their largest daily drop since October 10th, signaling a broad market pullback.
- Bitcoin has officially entered a confirmed bear market, plummeting to $97,956 and erasing over $450 billion in value since early October, with weak ETF flows and long-term holders selling.
- Applied Materials (AMAT) reported strong Q4 results, surpassing analyst expectations with net sales of $6.80 billion and adjusted EPS of $2.17.
- The White House announced new trade frameworks with Guatemala, Ecuador, and Argentina, aiming to remove import barriers and tariffs on key U.S. export sectors, particularly agricultural products.
- Money-market fund assets continued their ascent, rising by $1.82 billion to a total of $7.54 trillion for the week ending November 12th.
U.S. equity markets experienced a significant downturn, with the Dow Jones Industrial Average, S&P 500, and Russell 2000 all logging their steepest daily drops since October 10th. This broad market pullback saw losses concentrated in mega-cap technology and artificial intelligence-related stocks, contributing to the Nasdaq's third consecutive losing session. Rate-cut expectations have also shifted, with market pricing now assigning just over a 51% probability of a quarter-point Federal Reserve rate cut in December, down from nearly 63% a day earlier.
The cryptocurrency market faced a sharp selloff, with Bitcoin dropping to $97,956. This extends a selloff that has erased over $450 billion in value since early October. 10X Research indicates that crypto has entered a confirmed bear market, characterized by weak ETF flows, selling by long-term holders, and fading momentum. The next key support level for Bitcoin is identified at $93,000.
In corporate news, Applied Materials (AMAT) delivered robust fourth-quarter results, exceeding Wall Street estimates. The semiconductor equipment giant reported net sales of $6.80 billion, surpassing the estimated $6.67 billion. Adjusted earnings per share (EPS) also beat forecasts, coming in at $2.17 against an estimated $2.11. The company's Semiconductor Systems sales reached $4.76 billion, slightly above the $4.74 billion estimate, and it projects Q1 sales to be between $6.35 billion and $7.35 billion.
On the international trade front, the White House announced new trade frameworks and agreements aimed at boosting U.S. exports. The U.S. and Guatemala have agreed on a new trade framework designed to remove barriers for U.S. agricultural products, facilitate digital trade, and address state-owned enterprise distortions. Similarly, Ecuador is set to cut or eliminate tariffs on key U.S. export sectors, including machinery, health products, ICT, chemicals, motor vehicles, and selected agricultural products. Argentina will also grant preferential market access to a wide range of U.S. goods, scrap many import barriers, and ease digital trade rules.
Meanwhile, money-market fund assets saw an increase of $1.82 billion, reaching a total of $7.54 trillion for the week ending November 12th, according to the Investment Company Institute (ICI). In central banking news, the Bank of Canada announced it would resume buying government T-bills starting December 16th.
In defense and energy policy, the U.S. State Department approved a $100 million sale of a countrywide repeater system to Iraq, as confirmed by the Pentagon. U.S. officials have also raised concerns regarding Saudi Arabia's bid for F-35 jets, as reported by The New York Times. The U.S. military is set to intensify exercises in Trinidad and Tobago, according to the Financial Times. Domestically, the U.S. rescinded a 2024 rule concerning the Alaska National Petroleum Reserve, a move that could impact future energy development in the region.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.