Nasdaq in Turmoil: Nvidia Struggles Amidst AI and Trade Concerns

Wall Street's main indexes took a hit, with Nasdaq dropping significantly due to Nvidia's AI spending concerns and fears of a global trade war. The Nasdaq Composite dropped over 1%, nearing a market correction. At one point, Dow Jones and S&P 500 also saw declines.

In a troubling turn for Wall Street, major indexes fell sharply on Tuesday. The Nasdaq Composite index experienced a significant drop, falling over 10% from its all-time high amid lingering concerns regarding Nvidia's AI investments and global trade war fears.

The tech-heavy Nasdaq dropped over 1%, hitting 18,125.54 points, down more than 10% from its recent peak of 20,173.89 on December 16. This decline edges the index towards a market correction by standard definitions.

At 09:38 a.m. ET, the Dow Jones Industrial Average decreased by 394.50 points or 0.91% to 42,796.74, while the S&P 500 shed 40.78 points or 0.70% to reach 5,808.94, and the Nasdaq Composite fell 86.90 points or 0.47% to 18,263.29.

(With inputs from agencies.)