Dow Drops Almost 800 Points in Wall St.'s Worst Day in a Month

The US stock market sank to its worst day in a month and its second-worst since April on Thursday.

• The S&P 500 fell 113.43 points, or 1.7%, to 6,737.49 and pulled further from its all-time high set late last month.
• The Dow Jones Industrial Average fell 797.60 points, or 1.7%, to 47,457.22 from its record set the day before.
• The Nasdaq composite fell 536.10 points, or 2.3%, to 22,870.36.

Nvidia and other AI superstar stocks dragged the market lower amid continued worries that their prices had shot too high, the AP reports. Most other stocks on Wall Street also fell as traders questioned whether the coming cuts to interest rates that they've been banking on will actually happen.

Nvidia was the heaviest weight on the market after the chip company lost 3.6%. Other AI-related stocks also suffered, including drops of 7.4% for Super Micro Computer, 6.5% for Palantir Technologies, and 4.3% for Broadcom. Questions have been rising about how much further such AI darlings can go following their already spectacular gains. Stocks outside of AI also fell across Wall Street as traders worried that the Federal Reserve may not deliver another cut to interest rates in December, as they had been assuming.

Expectations have sunk sharply in recent days that the Fed will cut its main interest rate for a third time this year. Traders now see only a coin flip's chance of it, 49.6%, down from nearly 70% a week ago, according to data from CME Group. The Fed's job became more difficult recently because of the US government's six-week shutdown, which delayed many updates on the job market and other signals about the economy. The stock market mostly rose through the shutdown, as it has often done historically, but Wall Street is bracing for potential swings as the government gets back to releasing those updates. The fear is that the data could persuade the Fed to halt its cuts to rates.

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On Wall Street, the Walt Disney Co. helped lead the market lower after falling 7.8%. The entertainment giant reported profit for the latest quarter that topped analysts' expectations, but its revenue fell short. On the winning side was Cisco Systems, which rose 4.6% after the tech giant delivered profit and revenue that were bigger than analysts estimated. Another one of the relatively few stocks to rise was Berkshire Hathaway, the company run by famed investor Warren Buffett. He is known for loving bargains and won't buy stocks when they look too expensive. Berkshire Hathaway rose 1.8%.