U.S. Stocks Pullback Sharply As AI Valuation Concerns Resurface

Market Overview - Major stock indices experienced significant declines, with the Nasdaq falling by 445.80 points (1.9%) to 23,053.99, the S&P 500 down by 75.97 points (1.1%) to 6,720.32, and the Dow sliding by 398.70 points (0.8%) to 46,912.30, marking the lowest closing levels in two weeks [2][3] Sector Performance - Semiconductor stocks faced a notable downturn, with the Philadelphia Semiconductor Index dropping by 2.4%, while software stocks also declined, as indicated by a 2.2% slump in the Dow Jones U.S. Software Index [7] - Advanced Micro Devices (AMD) shares fell by 7.3%, and other major AI-related companies like Palantir Technologies (PLTR), Oracle (ORCL), and Nvidia (NVDA) also saw significant declines [3] - Qualcomm (QCOM) shares decreased by 3.6% despite reporting better-than-expected fiscal fourth-quarter results and providing positive guidance for the current quarter [3] Employment Trends - U.S.-based employers announced 153,074 job cuts in October, a 183% increase from September's 54,064 cuts and a 175% rise from 55,597 cuts in October of the previous year, indicating a concerning trend in the labor market [5][6] - The total job cuts announced through the first ten months of the year reached 1,099,500, the highest level since 2020, reflecting a tightening labor market influenced by AI adoption, reduced consumer and corporate spending, and rising costs [6] Global Market Trends - In overseas markets, the Asia-Pacific region saw mostly positive trading, with Japan's Nikkei 225 Index increasing by 1.3% and Hong Kong's Hang Seng Index rising by 2.1%, while major European markets experienced declines [8]