Amid concerns over potential interest rate hikes by the Federal Reserve, U.S. stocks tumbled to their lowest levels in a month on Thursday. This downturn comes as investors reevaluate the lofty valuations of Artificial Intelligence (AI) companies. The Nasdaq 100 declined by 1.2%, the S&P 500 dropped 0.8%, and the Dow Jones Industrial Average fell by 200 points. Recent employment data from the Bureau of Labor Statistics, which is the final report before the Federal Open Market Committee (FOMC) meets in December, indicated robust job growth. This bolstered predictions that the Fed will maintain current interest rates in the upcoming month.
Nvidia experienced a 1% decline after having surged as much as 5% earlier in the day. Despite surpassing earnings forecasts and emphasizing sustained demand for AI infrastructure, Nvidia could not assure that OpenAI will proceed with a significant $100 billion agreement, casting doubt over ambitious datacenter commitments. Meanwhile, AMD, Micron, and Oracle saw losses ranging from 4% to 9%. Contrarily, Walmart's stock surged 6% following the release of strong results and an upward revision of its financial guidance for the year.
