{"id":140950,"date":"2025-11-15T09:08:09","date_gmt":"2025-11-15T09:08:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/140950\/"},"modified":"2025-11-15T09:08:09","modified_gmt":"2025-11-15T09:08:09","slug":"ai-stocks-at-center-of-stormy-day-on-wall-street-erasing-sharp-1-3-drop","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/140950\/","title":{"rendered":"AI stocks at center of stormy day on Wall Street, erasing sharp 1.3% drop"},"content":{"rendered":"

An early swoon shook the U.S. stock market on Friday, as\u00a0Nvidia<\/a>, bitcoin, gold and other\u00a0high flyers<\/a>\u00a0swung on what\u2019s become an increasingly antsy Wall Street, but it quickly calmed.<\/p>\n

After starting the day with a sharp drop of 1.3%, the S&P 500 erased all of it and was up by 0.4%, with an hour remaining in trading. The Nasdaq<\/a> composite also flipped to a gain of 0.6%, while the Dow<\/a> Jones Industrial Average trimmed its loss to 163 points, or 0.3%, after earlier being down nearly 600 points.<\/p>\n

AI stocks were again at the center of the action, a day after dragging\u00a0Wall Street to one of its worst drops<\/a>\u00a0since its springtime sell-off. Nvidia<\/a>, which has become the poster child of the frenzy around\u00a0artificial-intelligence<\/a>\u00a0technology, began the day with a loss of 3.4%. It then stormed back to a rise of 2% and yanked the market in its wake.<\/p>\n

Critics\u00a0have been warning<\/a>\u00a0that the U.S. stock\u00a0market could be primed for a drop<\/a>\u00a0because of how high prices have shot since April, leaving them looking too expensive. They pointed in particular to stocks swept up in the AI mania. Nvidia\u2019s stock has more than doubled in four of the last five years, for example, and it\u2019s still up 42% for this year so far.<\/p>\n

Even with the S&P 500\u2019s swings the last couple of weeks, the index that dictates the movements for many 401(k) accounts remains within 2% of\u00a0its record set late last month<\/a>.<\/p>\n

\u201cOccasional market drops are the price of the ticket for the ride,\u201d said Brian Jacobsen, chief economist at Annex Wealth Management.<\/p>\n

Outside of tech, Walmart<\/a> edged down 0.2% after saying its\u00a0CEO, Doug McMillon, will retire<\/a>\u00a0in January in a surprise move. He had helped the retailer embrace technology more. It had been down as much as 3.6% in the morning.<\/p>\n

One way companies can tamp down criticism about too-high stock prices is to deliver solid growth in profits. That\u2019s raising the stakes for Nvidia\u2019s profit report coming Wednesday, when it will say how much it earned during the summer.<\/p>\n

If it falls short of analysts\u2019 expectations, more drops could be on the way. That would have a huge effect on the market because Nvidia has grown to become Wall Street\u2019s largest stock by value. That gives Nvidia\u2019s stock movements a bigger effect on the S&P 500 than any other\u2019s, and it can almost single-handedly steer the index\u2019s direction on any given day.<\/p>\n

Another way for stock prices broadly to look less expensive is if interest rates fall. That\u2019s because bonds paying less in interest can make investors willing to pay higher prices for stocks and other kinds of investments.<\/p>\n

Treasury yields had been falling for most of this year on expectations that\u00a0the Federal Reserve would cut<\/a>\u00a0its main interest rate several times this year. And the Fed has indeed cut twice already in hopes of shoring up\u00a0the slowing job market<\/a>.<\/p>\n

But questions are rising now about whether a third cut will actually come to fruition at the Fed\u2019s next meeting in December, something that traders had earlier seen as very likely. The downside of lower interest rates is that they can make inflation worse, and\u00a0inflation has stubbornly remained<\/a>\u00a0above the Fed\u2019s 2% target.<\/p>\n

Fed officials<\/a>\u00a0have pointed to\u00a0the U.S. government\u2019s shutdown<\/a>, which delayed the release of\u00a0updates on the job market and other signals<\/a>\u00a0about the economy. With less information and less certainty about how things are going, some Fed officials have said it may be better just to wait in December to get more clarity.<\/p>\n

In the bond market, the yield on the 10-year Treasury rose to 4.15% from 4.11% late Thursday.<\/p>\n

Bitcoin is one of the investments that can get a boost from lower interest rates. It briefly fell below $95,000 on Friday, back to where it was in May. It had been near $125,000 only in October.<\/p>\n

The price of gold, meanwhile, sank 2.4%. It\u00a0shot to records throughout the year<\/a>\u00a0as investors looked for something that could protect from high inflation and big debt loads built by the U.S. and other governments worldwide. But interest rates staying higher can hurt gold, which pays its investors nothing in interest or dividends.<\/p>\n

In stock markets abroad, indexes tumbled across Europe and Asia. South Korea\u2019s Kospi fell 3.8% for one of the world\u2019s largest losses.<\/p>\n

London\u2019s\u00a0FTSE 100 dropped 1.1% amid worries<\/a>\u00a0the U.K. government may ditch\u00a0plans to raise income taxes<\/a>, which would have helped chip away at its debt load.<\/p>\n

___<\/p>\n

AP Writer Teresa Cerojano contributed.<\/p>\n","protected":false},"excerpt":{"rendered":"An early swoon shook the U.S. stock market on Friday, as\u00a0Nvidia, bitcoin, gold and other\u00a0high flyers\u00a0swung on what\u2019s…\n","protected":false},"author":2,"featured_media":140951,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,123,233,80],"class_list":{"0":"post-140950","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-ie","12":"tag-ireland","13":"tag-markets","14":"tag-nvidia","15":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/140950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=140950"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/140950\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/140951"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=140950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=140950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=140950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}