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Stocks were well off their session highs on Thursday, as market-wide rally sparked by blockbuster Nvidia results and guidance lost steam and as investors lost hope that the Federal Reserve would cut rates again in December.
The Dow Jones Industrials index handed back its gains, settling 45.56 points to 46,093.21.
The S&P 500 stumbled 26.74 points to 6,615.42.
The NASDAQ slipped 125.93 points to 24,438.30.
Nvidia shares turned negative, dragging down the market with it. The stock gained as much as 5% after the chipmaker released its highly anticipated quarterly results, which beat Wall Street’s earnings and revenue expectations.
The market-moving company also gave a stronger-than-expected fourth-quarter sales forecast, with CEO Jensen Huang saying demand for its current-generation Blackwell chips are “off the charts.” He also rejected the idea of an AI bubble.
But the stellar results were not enough to keep the stock or the market higher with concerns swirling about AI stock valuations, especially if the Fed doesn’t lower interest rates. Oracle and AMD were among the first AI plays to fall into the red on the session. Nvidia then followed.
Stocks also got a small boost following the release of a better-than-expected U.S. jobs report. The release shows the economy added 119,000 jobs in September, beating expectations. The report was delayed due to the U.S. government shutdown. However, most investors were looking beyond the stale data release.
Prices for the 10-year Treasury gained, pushing yields down to 4.10% from Wednesday’s 4.13%. Treasury prices and yields move in opposite directions.
Oil prices moved downward one cent to $59.43 U.S. a barrel.
Gold prices dropped $20.80 to $4,062 U.S. an ounce.
