Dow closes down nearly 500 points, S&P logs its longest slide since August
Stocks fell again on Tuesday after tech shares continued to retreat on concerns about valuations of artificial intelligence-related stocks and as bitcoin dropped briefly below $90,000, a sign of reduced risk-taking by investors.
The Dow Jones Industrial Average shed 440 points, or 1%. The S&P 500 lost 0.7%, putting it on pace for its fourth straight losing session, which would be its longest slide since August. The Nasdaq Composite decreased 1%. At their lows of the session, the blue-chip Dow was lower by nearly 700 points, or 1.5%, while the broad-based S&P 500 and tech-heavy Nasdaq had fallen 1.5% and 2.1%, respectively.
The day’s moves were pressured by AI chip darling Nvidia, which fell more than 2%, and fellow “Magnificent Seven” members Amazon and Microsoft. Amazon was last down 4%, while Microsoft slumped 2%.
Nvidia has plummeted 10% this month leading up to the chipmaker’s third-quarter results due after Wednesday’s close. The company, which is reporting toward the end of a strong earnings season, has been at the center of a debate about the strength of the AI-powered market rally this year, as concerns have grown about pricey tech valuations and the soundness of AI fundamentals due to a boom in Big Tech debt offerings.
A big AI partnership announced Tuesday failed to lift related stocks like such deals have in the past. AI-startup Anthropic said it will spend $30 billion with Microsoft and, in turn, Microsoft and Nvidia will invest billions in Anthropic. Nvidia and Microsoft remained deep in the red following the deal.
Source : Cnbc.com
