Market Wrap | Wall Street Slips as Election Rally Cools and Biotech Stocks Steal the Spotlight
1min read On November 12th, Eastern Time, Wall Street experienced a downturn as the three major U.S. stock indices closed in negative territory. The S&P 500 fell by 0.29% ending at 5983.99 points, the Dow Jones Industrial Average dropped 0.86% to 43910.98 points, and the Nasdaq Composite slightly edged down by 0.09% to 19281.40 points.
Biotechnology company MediciNova surged by an impressive 49.02%, while Taysha Gene rose by 46.63%, and Mercurity Fintech climbed 44.44%. In contrast, Neurogene plummeted 44.08%, Pagaya Technologies declined by 35.58%, and FreightCar America fell 35.26%.
The ongoing rally that followed the U.S. presidential election now sees signs of cooling as investors gear up for potential profit-taking. The anticipated policies, such as tax cuts and deregulation proposed by President-elect Trump, had initially fueled optimism about an extended market rally, but recent trade policy announcements have dampened investor enthusiasm, particularly regarding the potential for tariff increases impacting global economic growth.
Investor sentiment was also affected as market participants focused on upcoming economic data releases, including the Consumer Price Index (CPI) and retail sales figures, which could provide insights into the Federal Reserve's future policy trajectory. Ameriprise Financial's Chief Economist, Russell Price, indicated that these concerns, especially the profit-taking ahead of economic data releases, added pressure to U.S. equities, exacerbated by weakening overseas markets.
In specific sectors, notable movements were observed. Energy shares edged down, with the Information Technology sector gaining modest ground, up 0.45%. In the tech sector, Nvidia advanced by 2.09%, while giants like Microsoft, Amazon, and Apple showed a slight gain or held steady. Industrial bellwether Tesla was a notable laggard, declining by over 6% alongside falls in other cryptocurrency-associated stocks.
Waymo, Alphabet's autonomous vehicle division, announced the expansion of its services in Los Angeles, indicating strong demand for its innovative transportation solutions. Meanwhile, Qualcomm's CEO commented that the current demand-supply balance in the semiconductor market is stable despite rising AI-driven demand.
In the investment landscape, expectations remain positive for the semiconductor industry, buoyed by continued advancements in AI and other technology sectors set to support long-term growth forecasts. As this sector continues its cyclical journey, attention is focused on 2025 projections, anticipating robust growth driven by AI integration and surging demands in data centers.