An intensifying selloff in bank and tech stocks dragged major indexes lower Monday, even after Warren Buffett’s Berkshire Hathaway disclosed a major bet on Google-parent Alphabet.
The declines accelerated in afternoon trading, fresh evidence that Wall Street is peeking closer under the hood of America’s artificial-intelligence boom.
Nvidia, Meta Platforms and Amazon all retreated. So did Advanced Micro Devices, Super Micro Computer and Dell Technologies, a big supplier of AI servers. Oracle and CoreWeave extended their weeks-long tumble.
A senior Federal Reserve official, Vice Chair Philip Jefferson, said the central bank ought “to proceed slowly” with future interest-rate cuts, given trade-offs between potentially sticky inflation and a weakening labor market. But Fed governor Christopher Waller said later Monday that the central bank should lower rates.
Later in the week, investors are looking ahead to earnings from artificial-intelligence bellwether Nvidia, due Wednesday, and delayed economic reports.
The delayed jobs report for September is slated for Thursday. Other data due this week includes reports on home sales and consumer sentiment. Earnings from big retailers, starting with Home Depot on Tuesday, will shed more light on the health of the economy.
Major U.S. stock indexes veered into the red and finished about 1% lower. The Dow industrials led the way, falling 1.2%, or 557 points.
Bitcoin selling resumed after the biggest weekly drop in months. The cryptocurrency was recently down 2.4% to $91,859.
Treasury yields declined slightly, with the 10-year settling at 4.132%.