NEW YORK (AP) — The U.S. stock market experienced a tumultuous start last Friday, driven by fluctuations in technology stocks, particularly those associated with artificial intelligence (AI). Notable players like Nvidia, alongside bitcoin and gold, contributed to an anxious atmosphere on Wall Street, but the market soon stabilized.
Initially, the S&P 500 index fell sharply by 1.3%, but it quickly recovered to finish with a modest decline of 0.1%. The Nasdaq composite managed to end the day up by 0.1%, while the Dow Jones Industrial Average decreased by 309 points, or 0.7%, after a steep drop of nearly 600 points earlier in the day.
Options traders Steven Rodriguez and Scott Frenzy at the New York Stock Exchange on November 14, 2025. (AP Photo/Richard Drew)
AI stocks, particularly Nvidia, were at the forefront of market movements. Following a difficult previous day, Nvidia saw its shares start down by 3.4% but rebounded to close up by 1.8%, helping to buoy the market overall. The company has become a focal point of the ongoing AI stock frenzy, with its stock more than doubling in four of the last five years and showing a gain of over 40% year-to-date. Investor sentiment remains cautious, however, as some analysts caution that high valuations, particularly in AI stocks, could be unsustainable.
Even amidst the recent volatility, the S&P 500 remains within 2.3% of its all-time high reached in late October. Brian Jacobsen, chief economist at Annex Wealth Management, noted, “Occasional market drops are the price of the ticket for the ride.”
In other developments, Walmart saw a slight decline of 0.1% after CEO Doug McMillon announced his unexpected retirement in January, having played a significant role in integrating technology within the retail giant.
The S&P 500 ultimately dropped 3.38 points to reach 6,734.11, while the Dow closed at 47,147.48, down 309.74 points. The Nasdaq, in contrast, rose 30.23 points, ending the day at 22,900.59.
Looking ahead, Nvidia’s upcoming earnings report on Wednesday will be critical, as solid profit growth could help alleviate concerns about its high stock price. Should Nvidia fail to meet analyst expectations, further declines could ensue, given that the company has emerged as Wall Street’s largest stock by market value, significantly influencing the S&P 500’s movements.
Interest rates also play a pivotal role in stock valuations. Lower rates generally make stocks more attractive compared to bonds, which offer lower yields. Despite recent cuts by the Federal Reserve aimed at stimulating the slowing job market, uncertainty looms regarding future rate cuts, particularly after upcoming meetings. The 10-year Treasury yield increased to 4.14% from 4.11% following the Fed’s cautious stance.
Furthermore, bitcoin fell below $95,000, retracing to levels seen in May, after peaking near $125,000 in October. Meanwhile, gold prices dipped by 2.4%, reflecting investor reticence as rates remain elevated, diminishing gold’s allure as a safe haven amidst inflation concerns.
On the global stage, stock indices fell in Europe and Asia, with South Korea’s Kospi experiencing a notable decline of 3.8%. In London, the FTSE 100 dropped 1.1% amid speculation regarding potential tax policy shifts by the U.K. government.
As the market navigates these turbulent waters, the performance of tech stocks, particularly those associated with AI innovations, will be closely monitored by investors around the globe.
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