"The S&P 500 sank 1.5% and pulled further from its all-time high set late last month. It's on track for its worst day in a month and its second-worst since plunging in April after President Donald Trump shocked the world with his announcement of "Liberation Day" tariffs. The Dow Jones Industrial Average lost 565 points, or 1.2%, from its own record set the day before, while the Nasdaq composite was down 2.4%, as of 1:29 p.m. Eastern time."
"Nvidia was the heaviest weight on the market after the chip company lost 4.7%. Other AI darlings also struggled, including drops of 7.6% for Super Micro Computer, 6.6% for Palantir Technologies and 4.7% for Broadcom. Questions have been rising about how much more superstar AI stocks can add to already spectacular gains. At the start of this month, Palantir was sporting a stunning rise of nearly 174% for the year so far, for example."
U.S. major stock indexes fell as AI-focused shares dropped and investors grew skeptical about anticipated Federal Reserve rate cuts. The S&P 500 fell 1.5%, the Dow lost 565 points (1.2%), and the Nasdaq dropped 2.4%, erasing gains from recent records. Nvidia slid 4.7% while other AI names such as Super Micro Computer, Palantir and Broadcom fell sharply. Palantir has risen nearly 174% year-to-date. Elevated AI valuations prompted comparisons to the 2000 dot-com bubble and concern that stretched prices may correct. Traders questioned whether expected December rate cuts will still materialize, weakening buying enthusiasm.
Read at Fortune
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