U.S. Stocks Plunge as Nvidia and Bitcoin Drive Market Decline

BREAKING: The U.S. stock market is in a tailspin as tech giants like Nvidia and the cryptocurrency Bitcoin continue to drag down investor confidence. Just moments ago, the S&P 500 plummeted 0.9%, while the Dow Jones Industrial Average dropped a staggering 557 points, or 1.2%, marking a significant retreat from its all-time high set just last month.

The Nasdaq composite also faced dire consequences, sinking 0.8% amid growing concerns over inflated tech stock valuations. Nvidia, often the heaviest weight on the market recently, fell 1.8%. Other AI-focused stocks struggled as well, with Super Micro Computer suffering a massive 6.4% decline.

In a shocking turn of events, Bitcoin has plunged below $92,000, down from nearly $125,000 just weeks ago. This dramatic fall has severely impacted cryptocurrency-related stocks, sending Coinbase Global down 7.1% and Robinhood Markets down 5.3%.

Critics are warning that the U.S. stock market could be poised for a significant downturn due to the extraordinary price surges since April. Stocks that have been riding the AI wave are particularly vulnerable, as analysts question whether they can meet the high expectations that have fueled their rapid growth.

Despite Monday’s losses, Nvidia remains up 39% for the year, having doubled its price in four of the last five years. All eyes are on Wednesday when Nvidia will report its summer profits. If the figures disappoint, it could undermine the assumptions that have propelled the stock market to record heights.

Further complicating the market landscape, Aramark saw a 5.2% drop after its quarterly profits fell short of expectations. Even with a projected profit growth of 20% to 25% for the upcoming year, investors were not convinced, leading to a decline in share value.

Meanwhile, Alphabet shares saw a modest increase of 3.1% after Berkshire Hathaway, led by renowned investor Warren Buffett, revealed it purchased a $4.34 billion stake in Google’s parent company. Buffett is known for his value-driven investment strategy, often shying away from overpriced stocks.

The S&P 500 closed down 61.70 points at 6,672.41, while the Dow Jones ended at 46,590.24, down 557.24 points. The Nasdaq finished at 22,708.07, down 192.51 points.

Looking ahead, the upcoming release of September’s delayed jobs report on Thursday could further shake the market. Investors are anxious to see whether the Federal Reserve will continue its rate cuts to support the slowing job market. Strong employment data could stall further cuts, while weak figures might heighten economic concerns.

In a statement, Barry Bannister, chief equity strategist at Stifel, noted, “The Fed’s ‘free lunch’ is over,” suggesting that any future rate cuts may be in response to a slowing economy rather than a proactive measure.

As the market continues to react to these developments, stay tuned for updates and analysis on how these trends will shape the financial landscape in the coming weeks.