Risky assets slide as concerns about lofty valuations grow

Risky assets slid, with tech stocks and cryptocurrencies bearing the brunt of the selling, after long-simmering concerns about lofty valuations were fanned anew by a chorus of Wall Street executives who warned investors to brace for a pullback.

Market Update for November 4

Tech stocks led the downside with software surveillance giant losing over 8% despite a strong quarterly report. AI chip heavyweight stock dropped nearly 4% while also fell over 5% ahead of the EV maker’s shareholder meeting this Thursday, which is set to feature a crucial vote on CEO’s pay package.

At a time when every dip in stocks is perceived as an opportunity, buyers emerged after a brief pullback led by some of the biggest winners of the artificial-intelligence boom. Bitcoin rallied. Bonds fell.

Conclusion

Volatility lashed Wall Street, with strong evidence of a cooling labor market pushing high-valuation tech stocks and crypto to big losses while bonds rallied on bets the Federal Reserve will cut rates.