The U.S. equity landscape moved sharply on Thursday as the Nasdaq Composite (COMP: 22,959.62, –446.84, –1.91%) extended its multi-day slide, marking its third consecutive decline and firmly establishing a rotation away from richly valued technology shares. The pressure intensified throughout the session as high-multiple megacaps dragged the index lower, overshadowing modest pockets of strength across the rest of the market. The S&P 500 (SPX: 6,764.96, –85.96, –1.25%) moved in tandem with the Nasdaq’s weakness as the influence of large tech constituents overwhelmed improving performance in other sectors, while the Dow Jones Industrial Average (DJIA: 47,794.96, –459.86, –0.95%) slipped back after its historic climb above 48,000, reflecting the heavy drag inflicted by a collapsing Disney share price rather than a deterioration in broad industrial momentum. Small-caps suffered as well, with the Russell 2000 (RUT: 2,410.46, –40.34, –1.65%) highlighting the continued sensitivity of levered and domestically exposed companies to shifting interest-rate expectations as traders reassessed the likelihood of a December Fed cut, now standing near 51% versus 63% only a day prior.The most visible stress point remained the megacap cohort. The Roundhill Magnificent Seven ETF (MAGS: $64.97, –2.30%) again concentrated the market’s pain: NVIDIA (NVDA: $185.96, –7.84, –4.05%) endured one of its sharpest drops of the month as traders grew increasingly uneasy ahead of its upcoming earnings release. Alphabet (GOOGL: $279.63, –7.08, –2.47%) faced mounting skepticism around ad-spend resilience. Amazon (AMZN: $239.16, –5.04, –2.06%) saw pressure tied to slowing consumer-discretionary signals, while Tesla (TSLA: $402.63, –27.97, –6.50%) suffered heavy selling amid fresh concerns about EV demand elasticity in a volatile rate environment. Microsoft (MSFT: $508.54, –2.60, –0.51%) and Apple (AAPL: $273.38, –0.09, –0.03%) managed more contained declines but still contributed to the index imbalance. The result was a concentrated selloff: even as the broader market’s average stock was down modestly, the S&P 500’s heavy weighting toward tech magnified the losses, marking one of the clearest demonstrations of the narrow leadership risk that had defined 2025 up to this week.Disney’s Collapse Becomes the Dow’s Dominant StoryThe session’s most severe single-stock drag came from Walt Disney (DIS: $106.38, –10.28, –8.81%), which delivered fiscal fourth-quarter results that rattled sentiment across the Dow. Revenue of $22.46B fell short of the $22.75B expected, with weakness in the TV and movie divisions offsetting the gains achieved in parks and streaming. Despite an EPS beat at $1.11 versus $1.05 forecast, investors focused squarely on the declining legacy media footprint. Disney quickly became the worst performer in the DJIA, erasing more than 300 points of index value on its own and reflecting renewed doubts about the company’s turnaround momentum under Bob Iger’s extended leadership cycle.In a striking contrast to tech’s meltdown, Cisco Systems (CSCO: $77.25, +3.29, +4.45%) surged toward its legendary dot-com-era record of $80.06. The company posted $14.88B in revenue, beating the $14.77B consensus, while EPS landed at $1.00, surpassing expectations. The company raised its fiscal-year revenue outlook to $60.2B–$61B, with EPS now guided to $4.08–$4.14, up from $4.00–$4.06 previously. Analysts noted that despite its approach toward those historic highs, Cisco’s current market cap of $291B is far below its peak above $500B in 2000 due to decades of share reduction—a structural shift that makes its present climb more grounded in fundamental cash-flow strength than speculative mania. The AI infrastructure build-out continues to serve as the primary tailwind, positioning Cisco as an unexpected outperformer in a market otherwise abandoning growth technology names.Shutdown Ends After Six Weeks, Leaving the Market Without October Jobs, Inflation and Other Core Economic Data Needed for Fed PositioningThe government reopened after the longest federal shutdown in U.S. history, but its aftershocks dominated investor psychology. The White House indicated that October’s inflation and jobs data may never be released, leaving traders effectively blind ahead of December’s FOMC meeting. The lack of these reports removes crucial datapoints for a central bank that has emphasized data dependence at every meeting this year. The uncertainty fed into Treasury volatility early in the session before yields stabilized, with the 10-year Treasury at 4.105% (+0.027) and the 2-year at 3.597% (+0.021). The absence of economic clarity kept rate-sensitive equities under pressure, and further disruption risk is expected as agencies attempt to restart their data pipelines in the coming weeks.Healthcare Takes Command as the Week’s Strongest SectorSector rotation became the most powerful theme as the S&P 500 Healthcare Sector (XX:SP500.35) advanced 5.5% for the week, vastly outpacing the Information Technology sector’s 0.1% gain. Income-oriented value areas, defensive cyclicals and industrial names benefited from this rotation as the S&P 500 Equal Weight Index slipped only 0.53% compared to the headline index’s 1.25% drop. The divergence highlighted that the primary stress remained isolated within high-capitalization tech names rather than broad equity deterioration. This shift also aligned with renewed concerns over valuations in AI-exposed companies, particularly given the spending race and hardware supply tightness that contributed to extended volatility around megacap narratives.Crypto Market Rotates as XRP ETF Launch Ignites VolumeDigital assets produced their own rotation, with XRP surging 3–4% after Canary Capital launched the first U.S. spot XRP ETF, trading $26 million worth of shares within the first half hour. The launch follows the increasingly open regulatory stance that allowed spot Bitcoin, Ethereum and Solana ETFs in prior quarters. Bitcoin (BTCUSD: 101,027.40, –490.41, –0.48%) traded slightly lower as flows chased the XRP debut, while Ethereum strengthened modestly as traders rotated among alternative Layer-1 assets. The return of crypto volatility, driven partly by ETF-related flows, reintroduced speculative dynamics that had been absent for several weeks amid macro uncertainty.Across global equities, Chinese technology names produced a mixed picture. Tencent (HK:700 / TCEHY) rallied after reporting double-digit revenue and profit gains that beat expectations, reflecting strong performance across its ecosystem, notably WeChat monetization and enterprise software growth. JD.com (JD: –1%), however, slid lower as profits contracted due to the company’s aggressive push into food delivery—an initiative expanding topline growth but eroding margins. Alibaba softened as traders recalibrated China consumer exposure during a period of economic uncertainty and strained competitive dynamics.Beyond megacaps, select mid-cap names delivered some of the day’s strongest and weakest individual moves.Firefly Aerospace surged around 18% following a narrower third-quarter loss and stronger-than-expected revenue. Its full-year forecast of $150M–$158M topped the $136M consensus, reinforcing confidence in its commercial-launch backlog.Dillard’s (DDS: $725.59, +119.63, +19.74%) exploded higher after reporting $1.49B in Q3 revenue, beating the $1.43B consensus, with comps rising 3% against expectations of flat performance.TKO Group (TKO: $183.48, +0.99%) gained after announcing a multi-year partnership with Polymarket, making UFC and Zuffa Boxing the first sports properties to integrate live prediction-market data into official broadcasts.Lyft drew bullish commentary from Loop Capital, which raised its price target to $31 from $20, citing improving margin trends and stable demand going into 2026.Starbucks (SBUX) faced disruption as unionized baristas initiated walkouts during Red Cup Day—a critical sales event—highlighting ongoing labor tensions within large consumer-facing brands.Precious Metals Strengthen as Silver Reaches Record Highs While Gold Holds FirmCommodity markets responded to the data blackout with renewed demand for hedges. Gold (GC: $4,202.80, –10.80, –0.26%) remained resilient despite mild intraday softness, while silver surged to fresh record highs, attracting both institutional and retail flows. The S&P GSCI Spot Index (559.42, +0.17%) also firmed, benefiting from broader commodity interest tied to inflation-uncertain environments.Oil Finds Support at $59 as Traders Brace for Revised U.S. Demand IndicatorsEnergy markets stabilized following days of volatility triggered by uncertainty around missing U.S. economic data. Crude Oil (CL: $59.01–$59.03, +0.92%) held above $59 on improving sentiment tied to reopening government agencies and expectations for revised demand figures. With global supply developments and geopolitical currents still influencing pricing, energy equities modestly outperformed tech, gaining traction in portfolio rotations favoring value and cash-flow stability.Treasury Yields Stabilize but Funding Stress Concerns RiseBond markets steadied following an early spike. The 10-year Treasury at 4.105% and the 1-month bill at 3.950% signaled a cautiously balanced market, yet analysts noted signs of tightening liquidity and increasing overnight funding pressures. With the Fed shrinking its balance sheet and the shutdown delaying key data, concerns emerged that policymakers may not have the full visibility required to interpret the evolving macro backdrop.The VIX (19.17, +1.66, +9.48%) climbed to one-month highs as traders priced in elevated volatility across index futures and options. With megacap tech unwinding, economic data absent, and Fed expectations pivoting daily, volatility is becoming structural rather than episodic. The heightened VIX reading aligned with the rotation narrative, confirming that the market is adjusting to a new equilibrium rather than reacting to a single-day shock.That’s TradingNEWS.comOriginal Post