By Sharecafe Team
Publication Date: 2025-11-20 21:36:00
U.S. markets fell on Thursday as the initial momentum from Nvidia’s strong earnings faded and optimism about another Federal Reserve rate cut in December faded. The Dow fell 0.84% after rising more than 700 points from its session highs. The S&P 500 slipped 1.56% and the Nasdaq fell 2.16%. All three benchmarks saw a significant turnaround after strong initial gains driven by enthusiasm over Nvidia’s recent results.
Nvidia initially rose as much as 5% after revenue beat expectations and it gave an optimistic forecast for the fourth quarter. But concerns about inflated valuations in artificial intelligence stocks began to emerge. Nvidia ended the day down 3%, despite CEO Jensen Huang assuring that demand for Blackwell chips was exceptionally strong and the AI sector remained healthy.
Outlook for AI reversal and interest rate cut
The broader AI trade also lost ground. Oracle and AMD were among the first big AI names to…
