Market Jitters: Wall Street's Late-Cycle Challenges and Tech Sector Woes

Wall Street's main indexes hit one-month lows as concerns about overvaluation and interest rate cuts mount, particularly impacting tech stocks such as Amazon and Nvidia. Investors await Nvidia's earnings for insights into the AI sector. Meanwhile, U.S. stocks pull back due to high valuations and evolving economic indicators.

Wall Street's key indexes tumbled to one-month lows as apprehensions about inflated equity valuations and the diminishing likelihood of a December interest rate cut grew. Investors keenly await Nvidia's earnings report and critical government data to gain clearer market direction.

The tech-heavy sectors, including Amazon and chipmakers, witnessed significant selloffs, contributing to broader market declines. Nvidia's upcoming earnings are seen as crucial for gauging the sustainability of the recent AI-driven stock market rally.

Ahead of major reports from Walmart and Target, concerns over American consumer health persist. The S&P 500 and Nasdaq's dip below 50-day moving averages, coupled with a high CBOE Volatility Index, reflect increased market unease.

(With inputs from agencies.)