By late morning, the S&P 500 was down 1.3%, the Nasdaq Composite fell 1.9%, and the Dow Jones shed 0.6%. Earlier in the session, the Dow briefly gained more than 150 points before turning negative. On the economic front, U.S. jobless claims jumped by the most in more than four years, reversing the sharp decline seen the previous week. This unexpected economic data added to the market's uncertainty.

The Federal Reserve's decision on Wednesday to cut interest rates by 25 basis points—the third cut this year—offered little support to the broader market as policymakers signaled caution about further reductions in 2026.

Market Overview: Tech Stocks Under Pressure

Key Stock Movers and Sector Performance

Broadcom and Semiconductor Stocks

Broadcom plunged 11% after warning of tightening margins on AI hardware, while AMD slipped 1% as semiconductor stocks broadly retreated. Oracle continued its decline, falling 5.8% following its biggest single-day drop since January.

Consumer Discretionary Resilience

Nvidia edged higher by 0.3% after reports the company plans to boost production of its H200 AI chips to meet robust demand from China. Lululemon surged 12% after raising its profit outlook for the year, showing consumer discretionary resilience.

Federal Reserve Policy Impact

The Federal Reserve's cautious approach to further rate cuts in 2026 suggests policymakers are concerned about inflation pressures despite recent economic data. This hawkish tilt has added another layer of uncertainty to market sentiment.