AI stocks at center of stormy day on Wall Street, erasing sharp 1.3% drop

Market Overview - The U.S. stock market experienced volatility, with the S&P 500 initially dropping 1.3% but later recovering to a gain of 0.4% [1] - The Nasdaq composite also saw a turnaround, gaining 0.6%, while the Dow Jones Industrial Average reduced its loss to 163 points, or 0.3% [1] AI Stocks and Nvidia - AI stocks, particularly Nvidia, were central to market movements, with Nvidia starting the day down 3.4% but recovering to a 2% gain [2] - Nvidia's stock has more than doubled in four of the last five years and is up 42% year-to-date, raising concerns about overvaluation [3] Economic Indicators and Interest Rates - The S&P 500 remains within 2% of its record high, indicating resilience despite recent fluctuations [4] - Lower interest rates could make stocks appear less expensive, as falling Treasury yields have been observed this year [7] - However, uncertainty surrounds potential future interest rate cuts by the Federal Reserve, with inflation remaining above the target [8][9] Company-Specific Developments - Walmart's stock edged down 0.2% following the announcement of CEO Doug McMillon's retirement, which had initially caused a 3.6% drop [5] - Nvidia's upcoming profit report is critical, as any shortfall could lead to further market declines due to its significant influence on the S&P 500 [6] Commodity Market - Bitcoin briefly fell below $95,000, a significant drop from nearly $125,000 in October, indicating sensitivity to interest rate changes [10] - Gold prices decreased by 2.4%, affected by higher interest rates which diminish its appeal as a non-yielding asset [11] Global Market Trends - International markets saw declines, with South Korea's Kospi dropping 3.8% and London's FTSE 100 falling 1.1% amid economic concerns [12]