US stocks end sharply lower as valuation concerns drive selloff

By Gokhan Ergocun

ISTANBUL (AA) - US stocks ended with sharp declines Thursday, as investors continued to exit technology stocks amid concerns over high valuations.

The Dow Jones Industrial Average fell 1.65%, or 797.60 points, to close at 47,457.22.

The Nasdaq decreased sharply by 2.29%, or 536.10 points, to 22,870.36, while the S&P 500 dropped 1.66%, or 113.43 points, to 6,737.49.

The Volatility Index (VIX), also known as the "fear index," rose by 14.22% to 20.00.

Investors have been shifting away from technology and artificial intelligence (AI) companies in particular toward more resilient sectors such as health care, materials and finance, and this shift intensified Thursday.

Nvidia, the chip company with the largest weighting in the S&P 500 index, led the market decline with a 3.6% loss.

Tesla shares fell 6.6%, Broadcom shares fell 4.3%, Alphabet shares fell 2.9%, Amazon shares fell 2.7% and Microsoft shares fell 1.5%.

In addition, the longest shutdown in US history came to an end late Wednesday after President Donald Trump signed a budget bill providing funding for the federal government until the end of January.

The US Bureau of Labor Statistics said it would announce revised release dates for data bulletins whose publication was delayed due to the shutdown.

White House National Economic Council Director Kevin Hassett also said the October employment report would be released without unemployment rate data.

Expectations that the Federal Reserve would cut its policy rate in December were also weighing on markets.