Is US stock market down today? Why is the US stock market crashing today — S&P 500 and Nasdaq fall big while Dow Jones gains

US stock market is down today as investors react to Big Tech earnings shocks and fresh signals from the Federal Reserve, while President Donald Trump’s meeting with China’s Xi Jinping adds global tension. The S&P 500 dropped 0.3%, and the Nasdaq slid 0.6%, led by steep losses in Meta and Microsoft, even as the Dow Jones gained 179 points, or 0.4%, on bank and healthcare strength.

Meta Platforms tumbled 11% after boosting its capital spending forecast to $70–72 billion for AI expansion, while Microsoft slipped 2% despite a 40% surge in Azure revenue. Investors grew cautious about rising tech costs, triggering a rotation out of megacaps like Nvidia, which also fell. Meanwhile, Alphabet soared 5% on stronger-than-expected earnings, posting $3.10 EPS vs $2.33 expected and $102.35 billion in revenue.

Outside tech, Eli Lilly jumped 5% after raising its 2025 revenue outlook to $63–63.5 billion, fueled by strong demand for Zepbound and Mounjaro. Comcast rose 2.5% after topping Q3 estimates despite broadband losses, while Restaurant Brands International gained 3% on booming Tim Hortons and international sales. JPMorgan and Bank of America both climbed over 1% as investors rotated into financials.
On the trade front, Trump and Xi concluded their meeting with a partial tariff truce. Trump agreed to cut fentanyl tariffs to 10%, reducing overall Chinese import duties to 47% from 57%. China pledged to halt fentanyl exports, increase soybean and farm purchases, and delay rare earth export restrictions by one year. “Rare earth issue has been settled,” Trump said. Shares of MP Materials and USA Rare Earth rallied 3.3% and 4.5%, respectively. But uncertainty lingered over Nvidia chip exports and TikTok’s U.S. divestment, as Beijing offered no timeline.

Markets also faced renewed pressure from Fed Chair Jerome Powell’s warning that another December rate cut is “not a foregone conclusion.” The central bank had just trimmed rates by 0.25%, but Powell’s caution sparked fears of a longer wait for further easing. Wealthspire’s Chris Maxey said Powell “spooked markets,” while Wharton’s Jeremy Siegel predicted the comment would “slow down the bull market, not stop it.” Siegel said the next six weeks of economic data—especially holiday spending amid tariffs—will guide the Fed’s next move.

As of early afternoon, the Nasdaq was still down 0.6%, the S&P 500 off 0.3%, and the Dow up 0.4%. Analysts say Wall Street could stay choppy as it digests earnings, trade deals, and monetary signals. Despite the drop, major indices remain close to all-time highs—showing resilient sentiment amid tech turmoil, tariff shifts, and Fed uncertainty.

Why is the S&P 500 falling while the Dow keeps climbing?

The S&P 500 slipped 0.3%, while the Nasdaq Composite dropped 0.6%. The Dow Jones Industrial Average gained 179 points, or 0.4%, lifted by strong performances in banks and healthcare.After market close Wednesday, Alphabet, Meta, and Microsoft reported quarterly earnings that shook tech sentiment. Alphabet shares surged 5% on strong Google Cloud and YouTube ad revenue, while Meta sank 11% and Microsoft lost 2%.Investors grew uneasy over their rising capital spending for AI expansion, which overshadowed positive earnings. Meta now expects $70–72 billion in 2025 capex, up from $66–72 billion earlier. Microsoft’s CFO Amy Hood confirmed higher spending ahead as Azure revenue climbed 40% in the latest quarter.

The drop in Meta, Microsoft, and Nvidia marked a rotation out of megacap tech into traditional sectors. JPMorgan and Bank of America advanced over 1% each.

Healthcare stocks also gained, led by Eli Lilly, which rose 2% after beating earnings and lifting guidance on strong demand for its Zepbound and Mounjaro drugs.

On the policy front, President Trump agreed to reduce fentanyl tariffs on China to 10%, lowering overall import duties to 47% from 57%.

China will curb fentanyl exports and buy more American soybeans and farm goods, while delaying new rare earth export restrictions by one year. “Rare earth issue has been settled,” Trump said after the talks.However, disputes over Nvidia chip exports and TikTok divestiture remain unresolved. China’s Commerce Ministry said it is “willing to work with the U.S.” but provided no timeline.

The selloff deepened after Federal Reserve Chair Jerome Powell said a December rate cut is not guaranteed. The Fed had cut rates by 0.25 percentage points this week.

“A further reduction in the policy rate at the December meeting is not a foregone conclusion,” Powell warned. Analysts said the remark dampened optimism for continued easing.

Chris Maxey of Wealthspire Advisors said markets are now recalibrating expectations. “Powell spooked markets with his lack of conviction. The easy part was cutting rates — now comes the wait for data,” he noted.

Wharton professor Jeremy Siegel told CNBC’s Squawk Box that the Fed’s hesitation could slow the bull market but not end it.

“This will slow down the bull market. I don’t think it’s going to stop it,” Siegel said. He emphasized that the next six weeks are key before the Fed’s December meeting.He added that consumer data, holiday spending amid new tariffs, and AI-related layoffs will influence the Fed’s decision.

Alphabet jumped more than 7% in premarket trading after posting $3.10 EPS vs $2.33 expected, and $102.35 billion in revenue, topping LSEG’s consensus.

Comcast rose 2.5% after beating Q3 estimates despite losing 104,000 broadband customers, bringing its base to 31.4 million.

Restaurant Brands International gained 3% as Tim Hortons and international units fueled revenue growth. Merck slipped 2% after mixed results despite $17.28 billion in revenue, exceeding estimates but missing slightly on Keytruda sales.

Rare earth miners MP Materials and USA Rare Earth rose 3.3% and 4.5%, respectively, on optimism from the Trump–Xi deal.

With earnings, trade, and Fed policy all in focus, Wall Street braces for choppy trading into November. Analysts see further sector rotation and short-term volatility as investors await clearer signals on interest rates and global trade stability.The S&P 500 and Nasdaq both remain near record highs despite recent dips, underscoring investor optimism tempered by macro uncertainty.

Why is the Dow gaining while the S&P 500 drops?

The Dow Jones Industrial Average is performing differently because it contains fewer of the mega-cap tech companies. Investors are rotating funds into industrials, financials, and other non-tech sectors. This rotation is helping the Dow hold up even as the S&P 500 struggles.

Points to note:

• The Dow benefits from companies with stable earnings outside the tech sector.
• Industrial and financial stocks are showing relative strength.
• Sector rotation reduces risk from over-concentration in tech.

This shift highlights a broader trend: many investors are seeking stability in uncertain times. By moving away from high-growth tech names, they hope to protect their portfolios while still participating in the market.

How are investors reacting to economic and policy news?

Investor sentiment is cautious. The Federal Reserve’s signals about interest rates are keeping traders on edge. Rising yields and uncertainty over future rate cuts make tech and growth stocks more volatile.

At the same time, global trade issues and U.S.-China relations are influencing market behavior. Companies that rely heavily on international supply chains are under the microscope, which adds another layer of caution.

Important points to consider:

• Market volatility is partly driven by macroeconomic uncertainty.
• Geopolitical developments can have outsized effects on certain sectors.
• Investors are balancing potential gains with risk exposure.

These factors are creating a market where short-term swings are common. Traders and long-term investors alike need to stay informed and flexible.

Could this trend signal a long-term shift in the market?

The current divergence between the S&P 500 and the Dow could indicate a broader rotation away from high-growth tech into more stable sectors. While tech remains a driver of long-term growth, the market is showing caution in the short term.

Analysts suggest that careful sector selection will matter more than ever. Investors who diversify across industries and monitor both earnings and policy trends may be better positioned to navigate volatility.

This trend also highlights the importance of understanding market composition. Knowing which sectors dominate an index can help investors anticipate movements and adjust their portfolios accordingly.

In summary, today’s market shows a clear split: S&P 500 struggles with tech-heavy losses, while the Dow benefits from rotation into more stable, non-tech sectors. Investors who act wisely, diversify, and follow the news closely will be better prepared for whatever comes next.

FAQs:

Why did the S&P 500 drop today?

The S&P 500 fell mainly due to Meta Platforms’ 9% drop and Microsoft’s 2% decline. High spending on AI and cloud projects raised concerns, pulling the tech-heavy index lower, despite some gains in companies like Alphabet.

Why is the Dow climbing while the S&P 500 falls?

The Dow has fewer mega-tech firms. Investors rotated into industrials, financials, and stable sectors, helping it gain even as the S&P 500 struggles.