{"id":2456,"date":"2025-11-20T22:45:35","date_gmt":"2025-11-20T22:45:35","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=2456"},"modified":"2025-11-20T22:45:35","modified_gmt":"2025-11-20T22:45:35","slug":"stock-markets-fall-erasing-earlier-gains-amid-ai-interest-rate-fears-national","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=2456","title":{"rendered":"Stock markets fall, erasing earlier gains amid AI, interest rate fears – National"},"content":{"rendered":"

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Jarring swings keep rocking Wall Street, and U.S. stocks erased a big morning gain to drop on Thursday as the market remains skittish following weeks of doubts and erratic moves.<\/p>\n

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After initially soaring toward what seemed like its best day since May, with an early surge of 1.9%, the S&P 500 erased all of it and fell 1.6%. The Dow Jones Industrial Average dropped 386 points, or 0.8%, and the Nasdaq composite sank 2.2%.<\/p>\n

In Canada, the main S&P\/TSX\u00a0composite index fell more than 370 points, weighed down by losses in the basic materials sector.<\/p>\n

The sharpest losses again hit what used to be the market\u2019s biggest winners. Nvidia, cryptocurrencies and other areas that had soared with nearly relentless momentum, as traders feared missing out on more gains, forced the market lower. Bitcoin dropped below $87,000, down from nearly $125,000 last month.<\/p>\n

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The market had been shaky coming into Thursday, largely because of twin worries: Nvidia and other superstar stocks caught up in the frenzy around artificial-intelligence technology may have simply shot too high, and the Federal Reserve may be done delivering the invigorating cuts to interest rates that Wall Street loves.<\/p>\n

Nvidia initially appeared to tamp down the worries about a bubble for AI stocks after reporting a big profit for the summer, along with a forecast for coming revenue that easily cleared analysts\u2019 expectations. By delivering strong profits and indicating more are coming, Nvidia can justify its stock\u2019s price gains and make it look less expensive.<\/p>\n

Given Nvidia\u2019s forecasts, \u201cit is very hard to see how this stock does not keep moving higher from here,\u201d according to analysts at UBS led by Timothy Arcuri. They also said \u201cthe AI infrastructure tide is still rising so fast that all boats will be lifted.\u201d<\/p>\n

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Nvidia jumped to an early gain of 5% but then dropped to a loss of 3.2%. Because it\u2019s the biggest company in the U.S. market by value, Nvidia\u2019s stock has more pull on the S&P 500 than any other company\u2019s.<\/p>\n

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Despite Nvidia\u2019s big numbers, worries about a potential AI bubble aren\u2019t gone. The concern among investors is that all the dollars pouring into AI chips and data centers may not ultimately produce the big profits and productivity for the economy that proponents have been promising.<\/p>\n

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Yes, Nvidia expects to sell another $65 billion of chips in the coming three months, which is more than analysts expected. But will all those chips actually create much bigger profits for Amazon and other companies using them? That question \u2014 whether all the investment in AI will prove to be worth it in the end \u2014 is still unanswered.<\/p>\n

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