As controversy persists that corporations related to artificial intelligence (AI) are overvalued, the New York stock market fell.
On the 18th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average finished at 46,091.74, down 498.50 points (1.07%) from the previous session. The Standard & Poor's (S&P) 500 index fell 55.09 points (0.83%) to 6,617.32, and the tech-heavy Nasdaq composite closed at 22,432.85, down 275.23 points (1.21%). With this, the New York market extended its losing streak to four sessions based on the S&P 500.
With the debate over overvaluation of AI-related stocks continuing and expectations spreading that the Federal Reserve (Fed) could hold its benchmark rate in December, weakness persisted, led by technology shares.
On the day, ▲ Nvidia fell 2.81%, ▲ Microsoft (MS) 2.70%, ▲ Amazon 4.43%, and ▲ Meta 0.72%. Nvidia will release its earnings after the New York market closes on the 19th.
AMD and Micron also dropped 4.25% and 5.56%, respectively, showing a sharp decline.
Cloudflare, a web infrastructure corporations cited as the cause of access disruptions to multiple sites including ChatGPT and X (formerly Twitter) on the day, fell 2.83%.
The Home Depot, Inc., a major retail chain, slumped 6.02% after lowering its annual guidance, and Walmart, which is set to report earnings this week, also slipped 1.52%, as large retailers weakened.
Mata Norton, an investment strategist at Empower, an asset management services firm, said, "We are seeing a significant reset in investor sentiment as earnings season arrives," and noted, "There is still a sense of fear pervading the market."