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Tech-Led Selloff Deepens Globally as S&P 500 and Nasdaq Break 50-Day Before Nvidia and Jobs Data

With confidence in AI leaders wavering, traders are refocusing on fundamentals.

Overview

  • U.S. stocks fell sharply Monday, with the Dow down about 1.2% and both the S&P 500 and Nasdaq closing below their 50-day moving averages for the first time since late April.
  • Risk-off sentiment spread overseas as Asian markets tracked Wall Street lower, with Tokyo and Seoul sliding more than 3% and Europe’s benchmarks also retreating.
  • Bitcoin hovered around $91,000–$92,000 after a steep six-week drop of more than 25%, erasing its year-to-date gains alongside broader de-risking.
  • Investors are bracing for Nvidia’s earnings on Wednesday and a long-delayed September U.S. jobs report on Thursday, with CME FedWatch showing roughly a 40%–45% chance of a December rate cut.
  • AI valuation worries intensified following reports that Peter Thiel’s hedge fund exited its Nvidia stake, while breadth weakened and tech downgrades added to pressure on high-flying names.