Nvidia, S&P 500 and Dow
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Stocks closed markedly lower on Tuesday as fears of a bubble in artificial intelligence technology hammered markets for a fourth consecutive trading day.
Major stock indexes ended sharply lower to begin the week, which will see AI darling Nvidia and retail giants report quarterly results, as well as the release of the September jobs report delayed because of the U.
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Stock Market Today: Dow Sinks 500 Points As Tech Pressure Persists; Nvidia Falls (Live Coverage)
The Dow dropped more than 600 points at one point in the session as it dipped below the 46,000 level, but blue chips cut losses to 0.8%, or around 350 points in recent action. Home Depot HD and Amazon AMZN lagged the Dow with drops of 4.8% and more than 3%, respectively. Microsoft was down 2.7%, while Nvidia lost 1.7%.
All three major U.S. stock indexes finished at one-month lows on Monday with investors rattled by doubts over the AI trade, as well as the potential for fewer-than-expected interest-rate cuts by the Federal Reserve.
Investors drove the Dow to back-to-back record gains shrugging off concerns about an AI bubble and the lack of economic data tied to the government shutdown.
Stocks are mixed with the Dow hitting fresh highs on strength in financial heavyweights like Goldman Sachs and JPMorgan, while AMD bucks the technology downtrend following bold AI growth forecasts. Caroline Woods is a Senior Host at TheStreet, where she covers markets and the economy from the New York Stock Exchange.
The blue-chip stock index has outpaced the S&P 500 and the Nasdaq over the past two full trading sessions as investors start to look beyond AI.
The Dow Jones Industrial Average posted a record high upon closing on Tuesday, while the Nasdaq Composite finished down as investors sold tech stocks.
According to preliminary data, the S&P 500 gained 4.45 points, or 0.08%, to end at 6,852.03 points, while the Nasdaq Composite lost 57.82 points, or 0.25%, to 23,410.48. The Dow Jones Industrial Average rose 327.72 points, or 0.69%, to 48,259.75.
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The S&P 500 dipped 0.8% while the tech-heavy Nasdaq fell 1.1% as investors panicked over whether AI firms have been overvalued – extending a rocky tech rout into its third week.