NEW YORK (AP) 鈥� The U.S. stock market sank Monday as and other superstars created by the frenzy around technology dimmed some more.
The S&P 500 fell 0.9% and pulled further from set late last month. The Dow Jones Industrial Average dropped 557 points, or 1.2%, and the Nasdaq composite sank 0.8%.
Nvidia was the heaviest weight on the market, as it鈥檚 often been in its last of The chip company fell 1.8%, while losses for other AI winners included a 6.4% slide for Super Micro Computer.
Other areas of the market that had been high-momentum winners also sank. Bitcoin fell below $92,000, down from nearly $125,000 last month, for example. That helped drag down Coinbase Global by 7.1% and Robinhood Markets by 5.3%.
Critics that the U.S. stock because of how high prices have shot since April, leaving them looking too expensive. Critics point in , which have been surging at spectacular speeds for years.
Even with Monday鈥檚 loss, Nvidia is still up 39% for the year so far after it doubled in price in four of the last five years.
That has Wall Street鈥檚 spotlight on Wednesday, when Nvidia will report how much profit it made during the summer. AI stocks have surged as much as they have because of expectations that they鈥檒l produce huge growth in profits. If they fail to top analysts鈥� expectations, that would undercut one of the big assumptions that鈥檚 driven the U.S. stock market to records.
Such high expectations extend beyond tech stocks, even if they are toughest for AI darlings.
Aramark fell 5.2% after the company reported a profit for the latest quarter that fell short of analysts鈥� expectations. The company, which offers food and facilities management for schools, national parks and convention centers, also said it expects an underlying measure of profit to grow between 20% and 25% this upcoming year. While relatively strong, that was less than what analysts had been forecasting.
That helped offset a rise of 3.1% for Alphabet. It jumped after Berkshire Hathaway said it built a $4.34 billion ownership stake in Google鈥檚 parent company. Berkshire Hathaway, run by , is notorious for trying to buy stocks only when they look like good values while avoiding anything that looks too expensive.
All told, the S&P 500 fell 61.70 points to 6,672.41. The Dow Jones Industrial Average dropped 557.24 to 46,590.24, and the Nasdaq composite sank 192.51 to 22,708.07.
Another source of potential disappointment for Wall Street is what does with interest rates. The expectation had been that the Fed would keep cutting interest rates in hopes of shoring up . Wall Street loves lower rates because they can give a boost to the economy and to prices for investments.
But questions are rising about whether a third cut for the year will come out of the Fed鈥檚 next meeting in December, something that traders had earlier seen as very likely. The downside of lower interest rates is that they can make inflation worse, and above the Fed鈥檚 2% target.
have also pointed to , which delayed the release of about the economy. With less information and less certainty about how things are going, some Fed officials have suggested it may be better to wait in December to get more clarity.
Now that the shutdown is over, the government is preparing to release September鈥檚 delayed jobs report on Thursday. That could create further swings for the market. Data that鈥檚 very strong would likely stay the Fed鈥檚 hand on rate cuts, while figures that are very weak would raise worries about the economy.
In 2026, the Fed is likely to cut interest rates only in response to a slowing economy instead of trying to cut ahead of it, according to Barry Bannister, chief equity strategist at Stifel. That鈥檚 not as good an environment for stock prices, and Bannister said the 鈥淔ed鈥檚 鈥榝ree lunch鈥� is over.鈥�
In the bond market, the yield on the 10-year Treasury edged down to 4.13% from 4.14% late Friday.
In stock markets abroad, indexes fell modestly across much of Europe and Asia.
Tokyo鈥檚 Nikkei 225 slipped 0.1% after the government reported that the contracted at a 1.8% annual pace in the July-September quarter.
South Korea鈥檚 Kospi was an outlier and jumped 1.9% as tech-related stocks there did well.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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