United States equities resumed their slide on Thursday (Friday AEDT) as the post-earnings Nvidia rally in technology stocks faded.
The Dow Jones Industrial Average fell 386.5 points, or 0.8%, to 45,752.3. The S&P 500 dropped 103.4 points, or 1.6%, to 6,538.8, while the Nasdaq Composite slumped 486.2 points, or 2.2%, to 22,078.1.
Nvidia had rallied as much as 5% in early trade after the chipmaker posted quarterly earnings and a fourth-quarter sales outlook that topped expectations.
However, sentiment quickly reversed, and the stock closed 3.2% lower as investors questioned whether the artificial intelligence boom could sustain recent valuations.
In contrast, Walmart held onto gains, rising 6.5% after delivering stronger-than-expected fiscal third-quarter sales and revenue, supported by solid growth in its e-commerce division.
Volatility jumped alongside the sell-off. The Cboe Volatility Index, Wall Street’s so-called fear gauge, surged 11.7%.
On the data front, the U.S. Bureau of Labor Statistics released a shutdown-delayed September employment report showing the economy added 119,000 jobs, above forecasts of 50,000, while the unemployment rate ticked up to 4.4%.
Following the data, the CME Group FedWatch Tool showed traders assigning a 39.6% probability that the central bank will deliver a third rate cut this year at its December meeting
On the bond markets, yields on the 10-year and 2-year Treasuries were down 1.3% and 1.6% to 4.084% and 3.537%, respectively.
