Stocks fell on Thursday, after a market-wide rally fueled by strong Nvidia results and guidance faltered and investors lost hope that the Federal Reserve would cut interest rates again in December.
The Dow Jones Industrial Average was last trading down 241 points, or 0.5%, after gaining more than 700 points at the session’s highs. The S&P 500 fell 1.1% despite rising 1.9% earlier in the day. The Nasdaq Composite was down 1.6%, down from a 2.6% gain at one point in trading.
Nvidia’s reversal to the downside dragged the broader market down. Shares rose 5% after the chipmaker reported better-than-expected quarterly results and an upbeat fourth-quarter sales forecast. CEO Jensen Huang said demand for its current-generation Blackwell chips is “off the charts” and dismissed the idea of an AI bubble.
But the stellar results weren’t enough to keep the stock or the market higher, given concerns about valuations for AI stocks, especially if the Fed doesn’t cut interest rates. Oracle and AMD were among the first AI firms to fall into the red during trading, followed by Nvidia, which last fell more than 1%, SEEbiz reports.
Adding to downward pressure was the September jobs report due to the delayed shutdown, which showed the economy added 119,000 jobs, more than economists had expected. After the data, the latest trading in Fed funds futures showed a less than 40% chance the central bank will cut interest rates next month for the third time this year – a negative for investors betting on lower rates.
