US stocks erased gains to one-month lows on Thursday amid the outlook of higher interest rates by the Federal Reserve, as markets reassessed risks that high valuations for AI companies are unwarranted.
The Nasdaq 100 lost 1.2% while the S&P 500 fell 0.8% and the Dow was 200 points lower.
Delayed employment data from the BLS, set to be the last before the FOMC’s December meeting, reflected stronger than expected job growth to consolidate expectations that the Fed will hold rates unchanged next month.
In the meantime, Nvidia dropped 1% after trading as high as 5% higher at the open.
The chip giant beat earnings estimates and noted that demand for AI infrastructure is sustainable, but said there was no assurance that OpenAI will surely follow through on $100 billion pact to maintain lingering concerns that datacenter pledges have been outdone.
AMD, Micron, and Oracle fell between 4% and 9%.
In turn, Walmart jumped 6% after posting results and increasing this year’s guidance.
