Big swings keep rocking Wall Street as S&P 500 veers from a nearly 2% jump to a 1% drop
NEW YORK AP Jarring swings keep rocking Wall Street and U S stocks erased a big morning gain to turn lower Thursday as the realm remains skittish following weeks of doubts and erratic moves After initially soaring toward what seemed like its best day since May with an early surge of the S P erased it all and dropped as much as It was down as of p m Eastern time The Dow Jones Industrial Average fell points or and the Nasdaq composite sank The sharpest losses came again from what used to be the industry s biggest winners Nvidia cryptocurrencies and other areas that had soared with nearly relentless momentum as traders feared missing out on more gains forced the realm lower Bitcoin briefly fell below down from nearly last month The industry had been shaky coming into Thursday largely because of twin worries Nvidia and other superstar stocks caught up in the frenzy around artificial-intelligence device may have only shot too high and the Federal Reserve may be done delivering the invigorating cuts to interest rates that Wall Street loves Nvidia initially appeared to tamp down the worries about a bubble for AI stocks after reporting a big profit for the summer along with a forecast for coming revenue that easily cleared analysts expectations By delivering strong profits and indicating more are coming Nvidia can justify its stock s price gains and make it look less expensive Given Nvidia s forecasts it is very hard to see how this stock does not keep moving higher from here according to analysts at UBS led by Timothy Arcuri They also reported the AI infrastructure tide is still rising so fast that all boats will be lifted Nvidia jumped to an early gain of but then dropped to a loss of Because it s the biggest company in the U S sector by value Nvidia s stock has more pull on the S P than any other company s Worries about a promising AI bubble aren t gone The concern among investors is that all the dollars pouring into AI chips and information centers may not ultimately produce the big profits and productivity for the financial market that proponents have been promising Yes Nvidia expects to sell another billion of chips in the coming three months which is more than analysts expected But will all those chips create much bigger profits for Amazon and other companies using them They still need to prove all the expenditure is worth it The preponderance latest survey of global fund managers by Bank of America displayed a record percentage of investors saying companies are overinvesting That helped make a foreseen AI bubble the No hazard that they saw for the territory one with a lower probability of happening but a chance of very big damage Amazon went from an early gain of Thursday to a loss of Palantir Technologies swung from a jump of to a loss of Specific of the domain s sharpest losses hit companies within the crypto industry as bitcoin tumbled to its lowest price since April Robinhood Markets dropped and Coinbase Global sank For the second worry that s been dogging Wall Street interest rates Thursday s jobs overview from the U S administration offered specific relief Financial markets initially seemed to pick the material apart for encouraging signals according to Seema Shah chief global strategist at Principal Asset Management The account revealed hiring by U S employers was stronger in September than economists expected which may suggest the market system remains solid But it also commented the unemployment rate worsened slightly which could give the Fed reason to cut its main interest rate at its next meeting in December Traders still see a December rate cut as relatively unlikely giving it a roughly probability according to records from CME Group But that s better than the chance they saw a day earlier before the September jobs review What the Fed does is critical for the stock area because prices ran to records in part because of expectations for continued cuts to rates The Fed has already cut rates twice this year to shore up the slowing job domain But lower rates can also worsen inflation which has stubbornly remained above the Fed s target On the winning side of Wall Street was Walmart which rallied after the retailer delivered another standout quarter It revealed strong sales and profits that blew past Wall Street expectations as it continues to lure cash-strapped Americans nervous about the business sector and prices In the bond sector the yield on the -year Treasury eased to from late Wednesday In stock markets abroad indexes rose across much of Europe and Asia Japan s Nikkei jumped and South Korea s Kospi rose for two of the bigger gains AP Writers Teresa Cerojano and Matt Ott contributed Source
