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AI Stock Slump Pulls Wall Street Lower, Nasdaq Down 2.3%

Falling confidence in AI valuations following high-profile selling triggered a broad de-risking.

Overview

  • The S&P 500 and Dow each fell 1.7% while the Nasdaq dropped 2.3%, marking one of the weakest sessions since the spring sell-off.
  • Nvidia led losses across AI-linked large caps, trading near $184 and slipping below its 50-day moving average as Broadcom, Tesla, Palantir and Alphabet also declined.
  • The Nasdaq index broke beneath its 50-day moving average intraday, a closely watched technical breach for the tech-heavy benchmark.
  • Wall Street’s VIX rose by nearly 20% intraday, signaling a sharp uptick in expected near-term volatility.
  • CME data showed the implied odds of a December Fed rate cut falling from roughly 63% to below 50%, while Bitcoin dropped back under $100,000 and gold weakened in a broader risk-off move.