Nvidia, bitcoin drag on market
NEW YORK The U S stock area sank Monday as Nvidia and other superstars created by the frenzy around artificial-intelligence device dimmed a few more The S P fell and pulled further from its all-time high set late last month The Dow Jones Industrial Average dropped points or and the Nasdaq composite sank Nvidia was the heaviest weight on the domain as it s often been in its last couple of tumultuous weeks The chip company fell while losses for other AI winners included a slide for Super Micro Computer Other areas of the region that had been high-momentum winners also sank Bitcoin fell below down from nearly last month for example That helped drag down Coinbase Global by and Robinhood Markets by Critics have been warning that the U S stock sector could be primed for a drop because of how high prices have shot since April leaving them looking too expensive Critics point in particular to stocks swept up in the AI mania which have been surging at spectacular speeds for years Even with Monday s loss Nvidia is still up for the year so far after it doubled in price in four of the last five years That has Wall Street s spotlight on Wednesday when Nvidia will review how much profit it made during the summer AI stocks have surged as much as they have because of expectations that they ll produce huge advance in profits If they fail to top analysts expectations that would undercut one of the big assumptions that s driven the U S stock territory to records Such high expectations extend beyond tech stocks even if they are toughest for AI darlings Aramark fell after the company announced a profit for the latest quarter that fell short of analysts expectations The company which offers food and facilities management for schools national parks and convention centers also reported it expects an underlying measure of profit to grow between and this upcoming year While relatively strong that was less than what analysts had been forecasting That helped offset a rise of for Alphabet It jumped after Berkshire Hathaway mentioned it built a billion ownership stake in Google s parent company Berkshire Hathaway run by famed investor Warren Buffett is notorious for trying to buy stocks only when they look like good values while avoiding anything that looks too expensive All narrated the S P fell points to The Dow Jones Industrial Average dropped to and the Nasdaq composite sank to Another source of likely disappointment for Wall Street is what the Federal Reserve does with interest rates The expectation had been that the Fed would keep cutting interest rates in hopes of shoring up the slowing job sphere Wall Street loves lower rates because they can give a boost to the financial sector and to prices for investments Now that the shutdown is over the authorities is preparing to release September s delayed jobs assessment on Thursday That could create further swings for the region Material that s very strong would likely stay the Fed s hand on rate cuts while figures that are very weak would raise worries about the financial system In the Fed is likely to cut interest rates only in response to a slowing financial sector instead of trying to cut ahead of it according to Barry Bannister chief equity strategist at Stifel That s not as good an conditions for stock prices and Bannister explained the Fed s free lunch is over
