Wall Street Worries: Nvidia & AI Dampens US Stock Market

The US stock market declined on Monday, led by a fall in Nvidia and other AI-related stocks. Despite high expectations for AI stocks, recent performance created concerns about overpriced valuations. The Federal Reserve's upcoming meeting on interest rates and the impact of the government shutdown are adding to market volatility.

The US stock market plunged on Monday, with Nvidia and other AI-focused companies at the center of investor jitters. The S&P 500 fell 1.1%, moving further away from its record high set in late September. Both the Dow Jones Industrial Average and the Nasdaq composite registered notable declines, reflecting heightened market anxiety.

Nvidia, often in focus due to its recent volatility, saw a drop of 2.9%. Other AI winners, such as Palantir Technologies and Super Micro Computer, faced declines of 3.2% and 6.8%, respectively. Critics caution that surging stock valuations, largely propelled by AI hype, are not sustainable and could herald a market downturn.

Traders remain on edge over the Federal Reserve's interest rate decisions, compounded by the recent government shutdown delaying economic data. With inflation still above the Fed's target, uncertainty looms over possible rate cuts. The release of the delayed job report may further influence the market, potentially exacerbating fluctuations.

(With inputs from agencies.)