The U.S. stock market suffered one of its worst days since April, with the S&P 500 falling 1.7%, the Dow 1.7%, and Nasdaq 2.3%. This significant tumble was primarily driven by a sharp decline in AI superstar stocks like Nvidia, Super Micro Computer, and Palantir, due to concerns about their overinflated prices and comparisons to the 2000 dot-com bubble. Adding to the market's woes were growing doubts about whether the Federal Reserve will proceed with anticipated interest rate cuts in December.
NEW YORK (AP) — The U.S. stock market tumbled Thursday to one of its worst days since its springtime sell-off, as Nvidia and other AI superstar stocks kept dropping on worries their prices shot too high. Also hurting the market were questions about whether coming cuts to interest rates that Wall Street has been banking on will actually happen. The S&P 500 sank 1.7% and pulled further from its all-time high set late last month. It was the worst day in a month for the index at the heart of many 401(k) accounts and the second-worst since April’s plunge after President Donald Trump shocked the world with his “Liberation Day” tariffs. The Dow Jones Industrial Average dropped 797 points, or 1.7%, from its record set the day before, while the Nasdaq composite lost 2.3%. Nvidia was the heaviest weight on the market after the chip company fell 3.6%. Other stocks swept up in the artificial-intelligence frenzy also struggled, including drops of 7.4% for Super Micro Computer, 6.5% for Palantir Technologies and 4.3% for Broadcom. RELATED STORIES Asian shares fall, tracking Wall Street’s tumble on worries about AI stocks and interest rates 3 MIN READ Japan’s SoftBank says it has sold its shares in Nvidia for $5.8 billion, turning its focus to OpenAI 2 MIN READ Rallies for Nvidia and Big Tech help Wall Street nearly erase last week’s loss 3 MIN READ Questions have been rising about how much higher AI darlings can go following their already spectacular gains. At the start of this month, Palantir was sporting a stunning rise of nearly 174% for the year so far, for example. Jeffrey Vazquez works on the floor at the New York Stock Exchange in New York, Thursday, Nov. 13, 2025. (AP Photo/Seth Wenig) Such sensational performances have been one of the top reasons the U.S. market has hit records despite a slowing job market and high inflation. AI stock prices have shot so high, though, that they’re drawing comparisons to the 2000 dot-com bubble, which ultimately burst and dragged the S&P 500 down by nearly half. AP AUDIO: Wall Street drops to one of its worst days since April on worries about AI stocks and interest rates Director of the White House National Economic Council Kevin Hassett was asked why he thought the market took such a huge hit today. In the meantime, stocks outside of AI also fell across Wall Street as traders worried that the Federal Reserve may not deliver another cut to interest rates in December, as many had been expecting. Wall Street loves lower interest rates because they can goose the economy and prices for investments, even though they can also worsen inflation. A halt in cuts could undercut U.S. stock prices after they already ran to records in part on expectations for more reductions.
