SPX: S&P 500 Dives as AI Worries Mount; Bitcoin Bear Market Deepens to Steep 30%

Broad sense of gloom and doom is sweeping markets left and right. Can Nvidia’s earnings report put an end to it all?

➡️ Selloff Here

• A wave of gloom rolled through global markets Tuesday as traders balked at sky-high AI valuations and capitulated further on crypto, sending the S&P 500 into another slide, lower by 0.5% in early trading.
• Bitcoin? Deeper into bear-market territory. The OG crypto plunged below $90,000 early this morning, continuing its rapid unwind from the $126,000 record set in early October. That’s a nasty 30% drop.
• Worries over the sustainability of the AI boom weighed heavily on megacap tech: Nvidia slipped 1%, while Amazon and Microsoft also traded under pressure.

⬅️ Selloff There

• Nvidia has shed 8% this month, and with earnings due Wednesday after the bell, traders are openly wondering whether the AI poster child can stop the bleeding. Or accelerate it.
• Meanwhile, rate-cut expectations for December are collapsing. Markets now price only a 50% chance of a third cut this year, a big drop from more than 90% a month ago.
• With economic data delayed by the longest US shutdown and lingering labor-market concerns, traders say the Fed’s next move is suddenly far less certain.