Stocks Plunge as US Reopens, Cloudy Fed Outlook Looms

Stocks fell sharply on November 12, 2025, as the United States government reopened, sparking concerns about the potential impact of fresh economic data on the Federal Reserve's interest rate decisions. The S&P 500 index plummeted 1.3% to 4,124.45, while the Dow Jones Industrial Average dropped 0.7% to 32,425.49. The tech-heavy Nasdaq Composite sank 2.1% to 13,441.19, with megacap stocks such as Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) leading the decline. The market's selloff was fueled by concerns that the upcoming economic data, including inflation and employment reports, may not be strong enough to justify a rate cut by the Federal Reserve. According to Dan Wilding, a senior portfolio manager at Pimco, the Fed has room for more rate cuts, which could weigh on the market. "We're not out of the woods yet," Wilding said in a recent interview. "The Fed has more room to cut rates, and that's a concern for the market." The market's reaction was also influenced by the rotation into more defensive names, as investors sought to reduce their exposure to high-growth stocks. This trend was evident in the performance of the Dow Jones Industrial Average, which was down only about half as much as the megacap gauge. The Dow's defensive tilt was driven by the strength of consumer staples and healthcare stocks, which outperformed the broader market. The selloff in tech stocks was also reflected in the performance of Bitcoin, which sank below $100,000 for the first time since October 2023. The decline in Bitcoin's price was a result of the broader market's risk aversion, as investors sought to reduce their exposure to high-risk assets. The US government's reopening was a major catalyst for the market's selloff, as investors had priced in the optimism surrounding the resolution of the shutdown. However, the market's reaction was also influenced by the underlying fundamentals, including the Fed's interest rate decisions and the performance of the economy. The market's future outlook remains uncertain, as investors await the release of fresh economic data. The upcoming inflation and employment reports will be closely watched by the market, as they will provide insight into the Fed's interest rate decisions. In the meantime, investors will continue to monitor the market's reaction to the data, as well as the Fed's actions, to gauge the potential impact on the economy and the stock market. In terms of company-specific news, Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) were among the biggest losers in the tech sector, with their stocks falling 2.5% and 3.1%, respectively. The decline in their stocks was a result of the broader market's risk aversion, as investors sought to reduce their exposure to high-risk assets. Overall, the market's selloff was a result of a combination of factors, including the Fed's interest rate decisions, the performance of the economy, and the rotation into more defensive names. As investors await the release of fresh economic data, the market's future outlook remains uncertain, and investors will continue to monitor the market's reaction to the data, as well as the Fed's actions, to gauge the potential impact on the economy and the stock market.