Overview
- The Dow fell 498 points, the S&P 500 lost 0.8%, and the Nasdaq dropped 1.2%, marking a fourth straight decline for major U.S. indexes.
- Selling concentrated in AI-linked megacaps as investors questioned lofty valuations and slower payoffs from heavy data-center spending.
- The S&P 500 closed below its 50-day moving average and the VIX hit a one-month high, reflecting rising short-term market stress.
- Nvidia reports after Wednesday’s close in a pivotal test for the AI trade, as odds of a December Fed rate cut sit near even ahead of the return of delayed jobs data on Thursday.
- Global markets softened and Bitcoin briefly dipped below $90,000, while analysts downgraded Microsoft and Amazon on concerns about generative AI economics and capital intensity.