Market drops on worries around AI, interest rates
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That hints at substantial gains in 2026 and investors can lean into that possibility by buying shares of Meta Platforms ( META +0.14%) and Alphabet ( GOOGL 2.94%) ( GOOG 2.89%). Wall Street is generally bullish on both stocks:
U.S. financial markets opened lower, sputtering for a second straight day as investors question the health of AI stocks.
Questions have been rising about whether such AI superstar stocks can add more to their already spectacular gains.
Gene Munster thinks Wall Street isn't factoring in a few key developments as analysts prepare for the chip giant's Q3 earnings report on November 19.
Wall Street ended sharply higher on Monday, led by big gains in Nvidia, Palantir and other heavyweight AI-related companies following progress in Washington to end a record government shutdown.
A rough week for tech stocks might signal a loss of investor confidence in artificial intelligence. The Wall Street Journal reports that the Nasdaq Composite Index was down 3% — making this its worst week since President Donald Trump announced his sweeping tariff plan in April.
The Nasdaq Composite clawed back to positive territory as a handful of key AI stocks like Nvidia rallied off their lows. The S&P 500 was down 0.2%, though only 147 stocks in the index were in positive territory.
The U.S. stock market tumbled on 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.