Dow Plunges 500 Points as AI Bubble Fears and Fed Rate Cut Doubts Spook Investors
Summary
Dow Jones crashes 500 points as investors panic over potential AI bubble similarities to dot-com crash while Federal Reserve rate cut hopes plummet from 90% to just 50%, sending major tech stocks including Nvidia, Amazon, Microsoft and Meta tumbling.
Key Points
- The Dow Jones Industrial Average plunges nearly 500 points or 1.1% as investors fear an AI bubble and diminished hopes for Federal Reserve rate cuts
- Major tech stocks including Nvidia, Amazon, Microsoft and Meta fall amid concerns that AI enthusiasm mirrors the dot-com bubble of the 1990s and early 2000s
- Odds of a Fed rate cut in December drop to just over 50% from more than 90% last month, spoking investors who want lower interest rates