Stocks have worst day in a month amid AI concerns, lower hopes for interest-rate cut

Market Overview - The Dow Jones Industrial Average fell by 798 points, or 1.7%, marking its worst day in over a month after reaching a record high the previous day [1][5] - The S&P 500 decreased by 1.9%, primarily driven down by Disney's disappointing revenue report, which caused its shares to drop by 8% [1][3] - The tech-heavy Nasdaq declined by 2.3%, as concerns grew over the potential overvaluation of AI stocks, exacerbating a sell-off that began the previous week [2][3] Tech Sector Performance - The "Magnificent Seven" tech firms, which have committed billions to AI initiatives, experienced significant stock declines, with Nvidia, Broadcom, and Tesla falling by 3.6%, 4.3%, and 6.6% respectively [3][6] - Alphabet and Amazon each saw their shares decrease by approximately 3%, while Microsoft shares dipped by 1.6% and Meta remained relatively flat [3] Economic Data and Interest Rate Expectations - The U.S. government reopened after its longest shutdown, which had delayed crucial monthly jobs and inflation data, vital for interest rate expectations [4][6] - The likelihood of a quarter-point interest rate cut dropped to 51.9%, a decrease of over 10% from the previous day, reflecting investor concerns about the lack of economic data [9] - National Economic Council Director indicated that the October jobs report would be released after a delay but would not include the unemployment rate, raising concerns about the Federal Reserve's ability to make informed decisions [7][10]