"Nvidia was again the heaviest weight on the market, and its drop of 2.8% brought its loss for the month so far to more than 10%. That's a steep enough fall that Wall Street has a name for it: a correction. What Nvidia does matters disproportionately to savers' 401(k) accounts because its immense size means it's the most influential stock on Wall Street. It single-handedly steers the direction of the S&P 500 some days, after fervent demand for its artificial-intelligence chips"
"The U.S. stock market's recent struggles are a sharp turnaround from its nearly relentless rally since April, when Wall Street last sold off after President Donald Trump shocked the world with stiff tariffs. That rally was so strong that critics say it may have carried prices too high, too fast and left the market at risk of a sharp drop. They point in particular to stocks swept up in the AI mania, which have been surging at spectacular speeds for years."
U.S. stock indexes declined, with the S&P 500 falling 0.8%, the Dow losing 498 points (1.1%), and the Nasdaq dropping 1.2%. Markets briefly recovered early in the day before reversing into losses. Nvidia led declines, down 2.8%, taking its monthly loss beyond 10%, a level classified as a correction. Nvidia's immense market value gives it outsized influence on the S&P 500 and many retirement accounts. The market had rallied strongly since April, driven in part by enthusiasm for AI-related stocks that have surged rapidly. A Bank of America Global Research survey found 45% of global fund managers flagging an AI bubble as a major risk.
Read at Fortune
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