For the first time since May, the S&P 500’s most widely followed benchmark, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY), briefly traded below its 50-day moving average last week. The index reclaimed that level and bounced, but it still closed the week lower, finishing down 1.63%. What stood out even more was the sharp weakness across several of the market’s biggest leaders. Meta Platforms (NASDAQ: META) is down more than 15% on the month ahead of Monday’s open, NVIDIA (NASDAQ: NVDA) has fallen more than 11% from its 52-week high, and Microsoft (NASDAQ: MSFT) has dropped more than 10% from its peak and nearly 5% on the month.
There are several possible catalysts behind the weakness. Profit-taking near record highs is always a factor, but recent macro headlines could also be contributing. Concerns over the lengthy government shutdown and its impact on the economy and travel surged after widespread flight disruptions last week. Labor market data also added pressure, with October marking the worst month for layoffs since 2003. Comments from NVIDIA’s Jensen Huang added more uncertainty after he suggested China could surpass the United States in AI, and investors are watching a key Supreme Court ruling on tariffs that could require the U.S. to refund over $1 trillion in revenue if it goes against the administration.
