Wall Street Slides as Nvidia, Bitcoin Extend Losses/ Newslooks/ WASHINGON/ J. Mansour/ Morning Edition/ U.S. markets dropped sharply Tuesday as tech stocks like Nvidia and crypto assets like Bitcoin continued their recent declines. Worries over inflated valuations, investor overexuberance in AI, and weak earnings weighed on sentiment. Wall Street’s retreat followed a similar sell-off across Asia and Europe.
Wall Street Market Recap Quick Looks
- S&P 500 down 0.7%, falling from recent high
- Dow drops 458 points; Nasdaq down 1%
- Tech leads losses: Microsoft -3.2%, Amazon -3.3%
- Nvidia slips 1.9%, down nearly 10% for November
- Bitcoin briefly falls below $90K, rebounds to $93K
- Global AI investment boom now seen as potential bubble
- Home Depot falls 4% on weak Q3 earnings
- Cloudflare drops 2.4% after internet outages
- 10-year Treasury yield dips to 4.12%
- Europe, Asia indexes also hit by widespread sell-off
Deep Look
Wall Street Drops Again as Tech and Crypto Weakness Rattles Investors
NEW YORK — U.S. stocks slid once more on Tuesday, continuing a global sell-off driven by renewed concerns over inflated tech valuations, an overheated crypto market, and growing doubts about the sustainability of the recent AI-driven rally.
The S&P 500 dropped 0.7%, retreating further from its all-time high set just weeks ago. The Dow Jones Industrial Average fell 458 points, or 1%, while the Nasdaq Composite shed another 1%, led by declines in some of the market’s most influential tech names.
Tech Giants Weigh Heavy on Indexes
Tech was once again at the center of the market’s turbulence. Microsoft tumbled 3.2%, Amazon dropped 3.3%, and Nvidia fell 1.9%, pushing its total decline for the month to nearly 10%—the technical threshold for what Wall Street calls a correction.
Nvidia, which had briefly surged past a $5 trillion market cap this year on the strength of its AI chips, remains the most powerful stock in the S&P 500 due to its size. That makes it a market bellwether — its swings alone can shift the broader index’s direction.
The company’s rapid rise over the last five years—where its stock price more than doubled in four of them—has fueled concerns that enthusiasm around artificial intelligence may be outpacing economic reality. Palantir Technologies is another example: its shares more than doubled in just the first half of this year.
AI Boom Faces Investor Skepticism
A Bank of America Global Research survey of fund managers revealed that while many institutional investors remain optimistic about further gains, 45% listed a potential AI bubble as the biggest “tail risk” — a low-probability but high-impact event that could shake the market.
Some investors now fear that the billions pouring into AI chips and data centers worldwide may not deliver the transformative impact — or profits — that proponents expect. The same survey noted a record percentage of investors believe companies are “overinvesting” in the space.
Bitcoin Continues Volatility
Cryptocurrency also struggled. Bitcoin’s price briefly dipped below $90,000, down sharply from its $125,000 peak just weeks ago. It later rebounded above $93,000, but the drop reinforced investor caution about volatile digital assets.
Earnings Warnings Add to Pressure
Adding to the market’s woes, Home Depot fell 4% after posting weaker-than-expected profits for the summer quarter. The company cited a surprisingly quiet hurricane season — typically a boost to home improvement sales — and flagged growing “consumer uncertainty” in the housing sector.
Cloudflare also slipped 2.4% after a global outage disrupted services like ChatGPT and others, reminding investors of the fragility of digital infrastructure.
Wednesday’s upcoming earnings report from Nvidia is now highly anticipated. With its shares teetering near correction territory, a strong result could stabilize sentiment — or further deepen the slide if results miss expectations.
Fed, Rates, and the Data Gap
The Federal Reserve’s next move remains unclear. A six-week government shutdown delayed key economic reports, including labor market data. While the latest jobless claims matched levels from a month ago, incomplete data is leaving traders uncertain about whether the Fed will cut interest rates again in December.
Expectations for rate cuts were one of the key drivers behind Wall Street’s sharp rally since April. The Fed has already made two rate cuts this year, aiming to stabilize the job market, but inflation remains above the central bank’s 2% target.
Global Markets Follow Suit
Global markets mirrored the U.S. downturn:
- Japan’s Nikkei 225 fell 3.2%, weighed down by rising bond yields and concern over new government spending plans
- South Korea’s Kospi lost 3.3%, while France’s CAC 40 dropped 1.9%
- The synchronized sell-off highlighted investor nervousness about high equity valuations and geopolitical tensions
What’s Next?
The market’s retreat marks a sharp shift from the bullish momentum that defined most of 2025. While optimism around artificial intelligence, crypto, and falling interest rates drove indexes to record highs, that same optimism may now be fueling investor anxiety about whether valuations have run too far, too fast.
With Nvidia’s earnings report on deck and the Federal Reserve’s path still uncertain, Wall Street may remain volatile in the days ahead — especially if upcoming data or earnings fail to meet lofty expectations.
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