Markets Stumble as AI Euphoria Cools, Fed’s Waller Pushes for December Rate Cut

Market Overview - U.S. equity markets closed sharply lower, with the S&P 500 falling by 0.98% to 6,668.20, the Nasdaq Composite dropping 0.91% to 22,691.35, and the Dow Jones Industrial Average declining 1.01% to 46,675.00, marking a significant shift as both the S&P 500 and Nasdaq closed below their 50-day moving averages for the first time since April 30 [2][8] - Concerns about AI-driven valuations are rising, exemplified by Nvidia shares declining by 2.6% ahead of its earnings report [3][8] Federal Reserve Insights - Federal Reserve Governor Christopher Waller advocates for a 25 basis point interest rate cut at the December FOMC meeting, citing a weakening labor market and stable inflation expectations [4][5][8] - Waller emphasizes the need to focus on labor market conditions over inflation, noting a decline in labor demand and reduced job openings [5] Cryptocurrency and Gold Market - Bitcoin has entered a "free fall," dropping below $93,000 and down over 25% from its October peak of $126,000, resulting in an estimated $1 trillion loss from the crypto market [6][8] - In contrast, China's central bank added an estimated 1.24 to 1.5 tons of gold to its reserves in September, continuing a trend of accumulation for 11 consecutive months [7][8] Corporate Developments - ITC Holdings Corp. announced Krista Tanner as its new President and CEO, effective March 23, 2026, succeeding Linda Apsey [9] - Thoma Bravo has reportedly made an offer to acquire Clearwater Analytics, which would take the company private, leading to an uptick in Clearwater's shares [10] Geopolitical Context - Tensions on the Korean Peninsula have escalated as North Korea responds to U.S. and South Korea's joint agreements, indicating potential military escalations [11]