U.S. indexes fell sharply, with the S&P 500 down 1.7%, the Dow off 797.60 points, and the Nasdaq lower by 2.3% for their worst session in about a month. High-flying AI names led declines—Nvidia sank 3.6% after SoftBank’s exit, while Broadcom lost 4.3% and Tesla slid 6.6%. Markets repriced Fed policy, with CME FedWatch showing roughly 52% odds of a December quarter‑point cut versus about 63% a day earlier and more than 95% a month ago. Volatility jumped as the VIX rose nearly 20% at midday, reflecting mounting concern over stretched tech valuations and the AI trade. Losses spread to Asia-Pacific, with Japan’s Nikkei down 1.85% and South Korea’s Kospi off 2.29%, while the shutdown’s end left gaps such as no October unemployment rate.
