IXIC: Nasdaq Composite Sheds 2.2% as Red-Hot Rally Turns into a Sharp Selloff

“Can only do so much,” Nvidia, probably, when it reported stellar earnings but that wasn’t enough to keep the market from falling apart.

💣 When Everything Breaks

• The Nasdaq Composite index IXIC tumbled Thursday after spectacular results from Nvidia couldn’t sustain an initial wave of buying.
• The tech-heavy index jumped as much as 2.6%, then violently reversed to close at a 2.2% loss. Nvidia, the main character, soared up to 5%, only to finish the session lower by 3%.
• Bitcoin slumped below $86,000, its lowest level since April, as crypto traders bailed on risk.

🚨 AI Boom to AI Bust, but in a Day?

• Investors cheered early in the day after Nvidia reported a 62% surge in data-center chip sales and raised its guidance. But stretched valuations and mounting bubble fears quickly erased the optimism.
• The S&P 500, which jumped as much as 1.9% after the open, ended 1.6% lower. The Dow Jones Industrial Average swung more than 1,000 points, finishing lower by 0.8%, or 387 points.

🚩 Jobs Data Adds to Confusion

• September’s long-awaited jobs report finally dropped: 119,000 jobs added, beating expectations.
• But the unemployment rate unexpectedly ticked up to 4.4%, muddying the Fed-cut outlook.
• Now that the shutdown is over, there doesn’t seem to be much clarity. Rather, the gloomy perspective continues to keep a lid on optimism. Apparently, despite the market’s biggest player posting its biggest win yet.