NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Retreats As Goldman Sachs Dives 7.8%

Dow Jones gained strong downside momentum amid broad pullback in the equity markets. The major sell-off in financial stocks served as the key catalyst for Dow Jones today.

Goldman Sachs is down by 7.8% as traders react to layoffs in Block. The company’s CEO Jack Dorsey said that new AI tools allowed the company to cut 40% of its workforce. American Express fell by 7.5%.

From a big picture point of view, traders are worried about the negative impact of AI on employment and, therefore, on the credit quality of financial companies’ customers. Traders are also worried that demand for financial services from traditional players would decline.

The recent Citrini report, which painted a dystopian picture of an economy which is a death spiral due to AI, quickly comes to mind when people look at Dorsey’s decision to fire as much as 40% of Block’s employees.

Dow Jones attempts to settle below the support at 48,700 – 48,800. In case this attempt is successful, Dow Jones will move towards the next support level, which is located in the 47,900 – 48,000 range.

For a look at all of today’s economic events, check out our economic calendar.