Tech Rout Widens as AI Spending and Valuations Come Under Pressure

Overview

• U.S. stocks fell for a fourth session, with the Dow down 1.07%, the S&P 500 off 0.83% and the Nasdaq lower by 1.21%, as risk aversion spread to crypto where bitcoin briefly dipped below $90,000 to a seven‑month low.
• Fresh funding plans intensified leverage worries: Amazon’s new bond sale seeks roughly $15 billion for data centers, and Microsoft and Nvidia disclosed a potential combined investment of up to $15 billion in Anthropic.
• Traders are bracing for Nvidia’s earnings on Wednesday and U.S. employment data on Thursday, with recent Fed commentary prompting markets to scale back expectations for a December rate cut.
• European equities slumped (Stoxx 600 −1.76%), Brazil’s Ibovespa slipped 0.30%, and the dollar weakened 0.26% against the real to R$5.3177 as major assets stayed in a cautious holding pattern.
• Brazil’s central bank ordered the extrajudicial liquidation of Banco Master as federal police arrested founder Daniel Vorcaro over alleged R$12 billion fraud, with the deposit insurance fund set to disburse R$41 billion to affected investors.